Crypto researcher Julio Moreno from CryptoQuant has attributed the recent bearish trend in Bitcoin's (CRYPTO:BTC) price to a decline in demand.
Moreno explained that this analysis centers on the concept of apparent demand, which evaluates Bitcoin's demand by monitoring inactive supply — Bitcoin that has not been moved or transacted for over a year.
According to CryptoQuant data, approximately 23,000 BTC have recently exited the 1-year inactive supply, indicating a reduction in demand as long-term investors choose to sell or transfer their holdings.
This decrease in demand has contributed to downward pressure on Bitcoin's price, a trend observed amid a broader market correction.
The researcher emphasised that such movements in Bitcoin supply impact market dynamics significantly, influencing price fluctuations.
Notably, the recent decline in demand follows the launch of US spot exchange-traded funds earlier in the year, which initially spurred higher demand and prices.