The post Bitcoin ‘Apparent Demand’ Is Now Green Again: What It Means appeared on BitcoinEthereumNews.com.

On-chain data shows the Bitcoin ‘Apparent Demand’ indicator has flipped back to positive. Here’s what this could mean for the asset’s price. Bitcoin Apparent Demand Has Surged Back Into Positive Territory In a new post on X, Ki Young Ju, the founder and CEO of the on-chain analytics firm CryptoQuant, discussed the latest trend in the Apparent Demand indicator for Bitcoin. “Apparent demand is the difference between production and changes in inventory,” notes Young Ju. “For Bitcoin, production refers to mining issuance, while inventory refers to inactive supply for over a year.” The mining issuance here measures the total amount of BTC that the miners produce by adding blocks to the network and receiving rewards. At the same time, the one-year inactive supply comprises the tokens that haven’t been transferred on the blockchain for more than one year. Below is the chart for the Apparent Demand for Bitcoin shared by the analyst. The trend in the 30-day sum of the metric over the last few years | Source: @ki_young_ju on X As is visible in the graph, the Bitcoin Apparent Demand had risen to highly positive levels during the rally to the new all-time high (ATH) in the year’s first quarter. A positive value suggests the decrease in the BTC inventory is greater than its production. “If the decrease in inventory exceeds production, demand is increasing, and vice versa,” explains the CryptoQuant CEO. However, the high demand for the cryptocurrency couldn’t be maintained as the metric had slumped to neutral values soon after the asset’s price had fallen into its consolidation phase. However, this trend of sideways movement around nearly neutral levels appears to have finally been broken recently, as the metric has witnessed a positive spike. So far, the Apparent Demand hasn’t reached levels anywhere near as high as…

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Filed under: News - @ October 16, 2024 11:20 am