Is Rising Bitcoin Demand Signaling the Start of a New Bull Run?

Bitcoin (BTC) has recovored from last week's slump and is currently trading at $62,600.

Recent data indicates a notable rise in Bitcoin demand, the largest cryptocurrency, raising speculation about a potential bull run.

Recent data indicates a notable rise in Bitcoin demand, the largest cryptocurrency, raising speculation about a potential bull run.Julio Moreno, CryptoQuant’s head of research, revealed on the X platform that Bitcoin is experiencing significant demand growth, reaching levels not seen since April 2022.

#Bitcoin demand seems to be recovering.

Demand is growing at the fastest monthly pace since April 22.

Although demand momentum remains in negative territory (red bars), meaning that there is still more selling than buying, the scale of this imbalance has eased.

Monitor Bitcoin… pic.twitter.com/uC24QvUrr6

— Julio Moreno (@jjcmoreno) October 12, 2024

This analysis relies on the apparent demand metric, which measures the difference between Bitcoin’s daily block subsidy and changes in long-term holdings. The metric reflects the cryptocurrency’s active circulation and market interest.

Previously, Bitcoin demand had waned since April when prices hovered around $70,000, often dipping into negative territory in recent months.

According to an October 2 report, Bitcoin may be entering a favorable seasonal period, particularly given that the fourth quarter of halving years typically sees bullish trends. Nonetheless, analysts note that increased demand is crucial for any price recovery.

Currently, the uptick in demand aligns with April levels, suggesting Bitcoin could be on the verge of a price rally, potentially reaching new all-time highs by Q4 2024. However, Moreno emphasized that while the selling still outweighs buying, the imbalance is less severe than before.