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▲ Bitcoin (BTC) ©CoinReaders
As Bitcoin (BTC) spot demand plummeted to its lowest level in a year, bearish warnings within the market are growing louder.
According to crypto media outlet Finbold on May 25 (local time), based on CryptoQuant data, Bitcoin's Apparent Demand recently fell to around -160,000 BTC. This is the lowest level since late April 2025. This indicator recorded its annual high of approximately 229,000 BTC on May 27 last year, meaning the current figure has decreased by nearly 30% in about a year.
Apparent Demand is an on-chain indicator that shows how much of the newly supplied Bitcoin to the market can be absorbed by current buying pressure. The deeper the indicator falls into negative territory, the more it implies that new demand cannot keep up with the increasing circulating supply. In fact, Bitcoin's apparent demand remained negative for most of 2026, and apart from a brief rebound at the end of February, it has not shown a clear recovery trend.
The outlet analyzed that this slowdown in demand is linked to changes in market structure. Spot buying is a structure where funds directly flow into the Bitcoin market, making it more sustainable than rallies based on leveraged futures. Conversely, recently, an increase in movements by long-term holders has led to increased supply pressure, and current spot demand alone is insufficient to absorb this, the explanation states.
However, Bitcoin also showed a short-term rebound amid expectations of US-Iran negotiations. As of the time of writing, Bitcoin was trading around $77,260, up 0.69% from the previous day. In the derivatives market, a massive short squeeze (buying pressure occurring to liquidate or cover short-selling positions) led to hundreds of millions of dollars in liquidations, and the movement of some altcoin funds into Bitcoin also helped the rebound.
Nevertheless, the market points to outflows from spot ETFs as a key burden. Particularly, with BlackRock selling over $1 billion worth of Bitcoin, the continuous outflows from Bitcoin spot ETFs are limiting short-term upward momentum, according to evaluations. Investors are focusing on the US Core Personal Consumption Expenditures (Core PCE) price index, scheduled to be announced on May 28, as the next key variable. Analysis suggests that depending on the results of this indicator, it could determine whether Bitcoin's rebound continues or if it returns to a correction phase.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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