- Bitcoin demand drops to a level seen only a few times since 2019 despite the price rebound.
- On-chain data shows several indicators that have previously appeared near major market bottoms.
- Bitcoin ETF flows remain mixed as some funds record outflows while others continue to attract investors.
Bitcoin price has climbed back above $63,000 after a sharp pullback, but demand across the market remains weak. Recent on-chain data shows one of the deepest demand drops seen since 2019. At the same time, several market signals linked to past cycle lows are starting to appear, leaving traders divided over what comes next.
Bitcoin Demand Falls to Rare Level
Bitcoin demand has dropped to a level that has only been seen a few times in recent years. Data shared by market analyst Moreno shows that the 30-day growth in combined spot and perpetual futures demand has moved close to minus 650,000 BTC.
That figure stands out because it points to a broad slowdown across the market rather than weakness in a single area. Spot buying has slowed, while activity in perpetual futures has also fallen. In simple terms, both regular buyers and traders using leverage have reduced their exposure at the same time. When that happens, there are fewer buyers available to absorb selling pressure.
Past market cycles show why this matters. A similar drop in demand appeared before the market crash linked to the COVID-19 panic in 2020. Weak demand was already visible before the sharp fall that followed. A related pattern was also seen during the 2022 bear market when prices struggled for an extended period.
That does not automatically mean another major decline is coming. Still, the data suggests that the market has not fully shaken off recent weakness. Moreno noted that readings around this level have often appeared before periods of heavy price swings.
For now, the recovery above $63,000 has helped improve sentiment. Even so, demand remains much lower than traders would normally want to see during a strong upward move.
Has Bitcoin Price Reached The Market Bottom?
It is worth noting that while demand data is raising concerns, other indicators are telling a different story. Analyst Ali Charts believes the recent correction may have pushed Bitcoin closer to a market bottom.
The Bitcoin price fell from nearly $83,000 to around $59,000, wiping out a large amount of leveraged positions along the way. Long-term holders also played a role in the decline. According to the analyst, more than $3.25 billion worth of BTC was distributed into the market during the sell-off.
Another point attracting attention is the supply-in-loss metric. Current figures show that more than 10.46 million BTC is being held at a loss. In previous cycles, readings above the 10 million mark appeared near major bottoms.
Exchange activity has also increased. More than 54,000 BTC moved onto trading platforms during the past two weeks. Such transfers can increase selling pressure because coins become easier to trade. Ali Charts also highlighted MVRV pricing bands that have historically marked areas where long-term buyers begin building positions. Those levels are currently around $53,900 and $43,150.
Although no indicator can guarantee where the bottom will be, several traders believe the market is entering a zone that has previously attracted strong buying interest.
Bitcoin ETF Market Outlook
The spot Bitcoin ETF market remains an important part of the story. Recent data shows total daily net outflows of $91.38 million across Bitcoin ETF products. The largest withdrawal came from BlackRock’s IBIT fund, which recorded outflows of $232.92 million.
Not every fund posted losses. Fidelity’s FBTC attracted $59.37 million, while Bitwise’s BITB recorded inflows of $14.12 million. ARKB also added $63.14 million. The mixed results suggest that institutional investors are not moving in one direction. Some are reducing exposure, while others continue to buy.
For Bitcoin price, that creates a mixed picture. Demand data remains weak, ETF flows are divided, and traders are still debating whether the recent decline marked the end of the correction.
