Bitcoin Price Stagnates as Demand Fades 15% Since May

Bitcoin’s price movements have shown a market in balance, with neither bulls nor bears in control. This equilibrium is largely due to the holding behavior of investors, who appear to be in no rush to exit their positions. Despite this, Bitcoin is currently struggling to push higher due to a lack of strong buying demand. Without sufficient demand to match or exceed supply, upward momentum remains limited.

On-chain metrics support the view of waning demand. The 30-day apparent demand for Bitcoin has been decreasing since its recent local top in early May. This metric compares Bitcoin’s fresh supply with over 1-year dormant supply and serves as a proxy for market demand. The decline in this ratio suggests that fresh BTC demand in the market has been fading over the recent few weeks.

However, the steady decline in demand has not pushed the market into a sell-off. This is largely due to the firm holding action by long-term holders. Even as profit-taking crawls forward due to rising geopolitical tensions, HODLers refuse to budge. The number of investors holding small coins, especially in the 10–100 BTC range, has been significant, keeping the market in equilibrium. Selling pressure is present, but it is being mitigated by adequate buying interest to discourage sharp declines.

The current equilibrium, courtesy of the strong holders’ sentiment, could fade soon if the demand for BTC does not materialize. Until then, Bitcoin’s price will likely remain at this spot of muted tension. The market is balanced, but at a breaking point, with the next steps for BTC dependent on whether demand can be reignited.