Bitcoin Surges 4.3% to $85,000 Amid Weak Demand Concerns

Bitcoin (BTC) has shown a significant price recovery, surpassing the $85,000 mark following a 4.3% increase over the past 24 hours. This rebound has ignited renewed optimism among investors, who are now seeking indications of sustained momentum in the market.

Despite this positive movement, on-chain data indicates that market demand for Bitcoin remains weak. This could potentially impact the longevity of the current rally. Recent analysis by CryptoQuant analyst Darkfost reveals that Bitcoin’s demand is at its lowest point of the year. The analysis highlights a key supply-demand ratio, which shows a steady decline in Bitcoin accumulation since December 2024.

This lack of demand, combined with ongoing economic and political uncertainties, suggests that investors are exercising caution before making larger commitments. Darkfost’s analysis measures Bitcoin demand by comparing new supply entering the market to the supply that has remained inactive for over a year. When this ratio falls below zero, it indicates that fewer BTC are being actively accumulated, signaling a negative demand shift.

Darkfost’s findings suggest that investor interest in Bitcoin has been waning for months, despite short-term price movements indicating otherwise. The decline in demand aligns with broader economic uncertainties and geopolitical tensions. Investors appear to be shifting towards less volatile assets, which could explain the gradual slowdown in Bitcoin’s accumulation rate.

While this does not necessarily signal a bearish outlook, it does suggest that market conditions remain fragile. Bitcoin’s price action may be highly reactive to upcoming economic events. Despite these concerns, analysts remain optimistic about Bitcoin’s long-term trajectory. Javon Marks, a widely followed crypto analyst, has shared a Bitcoin price target of over $500,000.

Marks pointed out that historical price structures indicate the possibility of a major bull phase, suggesting that BTC may be approaching its strongest bullish period yet. Additionally, another analyst, Ali, highlighted Bitcoin’s recent ascending triangle formation, a pattern that typically signals a breakout opportunity. Ali noted that if BTC were to break past the $84,000 resistance level, a 9% price surge could follow. As of now, BTC has already surpassed this critical level, raising the possibility of an extended rally if buying pressure sustains.