Bitcoin Demand Dips as On-Chain Activity Slows, but Strategy’s $2 Billion Bitcoin Purchase Defies Market Trends
The post Bitcoin Demand Dips as On-Chain Activity Slows, but Strategy’s $2 Billion Bitcoin Purchase Defies Market Trends appeared on BitcoinEthereumNews.com.
For the first time since September 2022, Bitcoin’s demand seems to have diminished, and this recent development signals a shift in market sentiment. Fresh data from Glassnode shows that exchange inflow volumes have dropped sharply, which is usually a sign that on-chain activity is also dropping. Lower on-chain activity generally means lower network utilization, and it seems like the network is being utilized less and less these days. This shift in demand could denote a shift in investor sentiment toward Bitcoin. If it does, then this could have significant implications for how we price the asset going forward. Bitcoin Apparent Demand has dropped negative for the first time since September 2024. pic.twitter.com/MR6I5DGuOg — CryptoQuant.com (@cryptoquant_com) February 24, 2025 The volume of Bitcoin flowing into exchanges—which is a prime indicator of demand—has been decreasing. This signals that there is now a lower number of people sending Bitcoin to exchanges in order to buy or sell it. Generally, when people are not sending their Bitcoin to exchanges, there is not much buying or selling happening on said exchanges. And if there is not much happening on the exchanges, that is usually not a good sign for the overall cryptocurrency market. Strategy’s $2 Billion Bitcoin Purchase Amid Declining Demand In spite of these worrisome trends, one leading player is defying the market’s overall mood. Strategy, formerly MicroStrategy, has made a splash by reporting another large Bitcoin buy this week. The firm told us that it acquired an additional 20,365 BTC for around $2 billion, expanding its already record-setting Bitcoin treasury. With this latest buy, Strategy has more Bitcoin than just about any country on Earth, an astounding feat that really cements its place as one of the largest institutional holders of the cryptocurrency. #Bitcoin $BTC exchange inflow volume is shrinking, signaling lower on-chain…
Filed under: News - @ February 25, 2025 10:20 am