Bitcoin Rebounds Above $85,000 Amid Weak Market Demand

Bitcoin (BTC) is experiencing a notable price recovery, reclaiming the $85,000 level after a 4.3% increase in the past 24 hours. This rebound has sparked renewed optimism among investors, who are now looking for signs of further momentum in the market.

However, while Bitcoin is showing signs of a potential uptrend, on-chain data suggests that market demand remains weak, which could impact the sustainability of this rally.

Bitcoin Demand Drops Despite Price Recovery

Recent on-chain analysis by CryptoQuant analyst Darkfost has revealed that Bitcoin’s current demand is at its weakest level of the year. His research highlights a key supply-demand ratio, showing a steady decline in Bitcoin accumulation since December 2024.

This lack of demand, coupled with ongoing economic and political uncertainty, may indicate that investors are exercising caution before making larger commitments.

According to Darkfost’s analysis, Bitcoin demand is measured by comparing new supply entering the market to the supply that has remained inactive for over a year. When this ratio falls below zero, it indicates that fewer BTC are being actively accumulated, which can signal a negative demand shift.

The weakest Bitcoin demand of the year

“Demand has been weakening since December and continues to decline over time. This suggests that investors are becoming more cautious and may be shifting toward less risky assets.” – By @Darkfost_Coc

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