Bitcoin Price Rally Faces Headwinds as Spot Demand Weakens

Bitcoin (BTC) has surged past $90,000, hitting $91,700 on April 22, but on-chain data reveals underlying weakness in demand that could threaten the rally’s sustainability. According to CryptoQuant, spot demand for Bitcoin has declined by 146,000 BTC over the past 30 days, despite the recent price recovery. While trading volume is up 10.26% and price increased by 4.85%, the broader demand momentum remains negative.

The data shows Bitcoin’s demand momentum—tracking net activity from new investors—has dropped by 642,000 BTC, reaching its lowest point since October 2024. This trend indicates hesitation among investors, even as the asset leads the market’s recent uptrend.

CryptoQuant’s analysis suggests that without a rebound in both spot demand and investor momentum, the current rally may not be sustainable. Historical bull runs have typically coincided with rising demand, making this divergence a potential red flag.

Adding to investor caution, spot Bitcoin ETF flows in the U.S. have remained flat since late March, oscillating between -5,000 and +3,000 BTC daily. This lack of strong institutional inflows reflects the subdued sentiment in the market.

Despite Bitcoin’s resilience in price and volume, the weakening demand from both retail and institutional investors signals a divergence from previous bull cycles. Without renewed interest and stronger fundamentals, analysts warn that Bitcoin may struggle to maintain its upward trajectory. Investors are watching closely, hoping for a rebound in demand to support further gains.