Bitcoin’s prolonged correction is driven by a sharp decrease in demand for nearly all investor cohorts.
Bitcoin (BTC) price dropped 5.42% over the last 24 hours to hit a new multi-week low at $57,151 on May 1. On-chain data shows that a slowdown in Bitcoin demand growth and increased open short positions may be responsible for the latest drawdown, and it’s possible that new lows will be in store for BTC.
Reporting from CryptoQuant attributes BTC’s latest decline to a slowdown in demand characterized by decreased growth in Bitcoin balances among permanent holders, slowing spot Bitcoin ETF demand and an increase in short positions in the futures market.
CryptoQuant data shows that demand from permanent holders (investors who only purchase Bitcoin and never sell) fell by 50% in April, from over 200,000 BTC in late March to about 90,000 BTC.
