Bitcoin Demand Hits 2025 Low Amid Macro Concerns, 25% Price Drop

Bitcoin's apparent demand has reached its lowest point in 2025, according to data from the quantitative analytics platform CryptoQuant. This decline is attributed to ongoing macroeconomic concerns that have dampened investor enthusiasm. The 30-day moving average of "apparent demand," which measures the difference between new supply and Bitcoin that has been inactive for over a year, has shown a significant decrease. This indicates a reduction in the number of active buyers and a more cautious market sentiment.
Fears of a prolonged trade war, geopolitical tensions, and stubbornly high inflation, which is cooling but is nevertheless above the Federal Reserve’s 2% target, are causing traders to take a step back from riskier assets and into safe havens such as cash and government securities. Bitcoin's apparent demand has been positive since September 2024, peaking around December 2024 before beginning the slow descent back down. However, demand levels stayed positive until the beginning of March 2025 and have continued to decline since that point.
Despite the slowdown in inflows, Bitcoin exchange-traded funds (ETFs) have demonstrated remarkable resilience. These funds have managed to retain over 95% of their invested capital, even as the price of Bitcoin has experienced a notable 25% drop. This behavior mirrors that of traditional stock ETFs, where long-term investors tend to hold onto their assets during bearish periods. The total assets under management for Bitcoin ETFs have reached $115 billion, reflecting a shift in investor strategy from short-term speculation to long-term wealth accumulation.
However, several indicators suggest potential turbulence ahead. The Sharpe ratio of Bitcoin, which measures risk-adjusted returns, has been declining since March 2024. This trend indicates an increase in risk per unit of return, which can be attributed to macroeconomic uncertainty, rising volatility, and a slowdown in short-term returns. Additionally, large Bitcoin holders have been selling off their assets, with over 50,000 BTC sold last week, amounting to approximately $4.07 billion. This selling pressure further underscores the cautious sentiment in the market.
The data from CryptoQuant also reveals that demand for Bitcoin fell by 103,000 BTC last week, marking the sharpest decline since July 2024. This significant drop in demand, coupled with the negative apparent demand, suggests that the market is experiencing a period of reduced activity and heightened risk. Investors are advised to remain vigilant and consider the potential for further market volatility in the coming months.

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