The 30-day demand for Bitcoin [BTC] is on the way back up after the extreme drop in demand it experienced due to its recent price decline. The metric has now turned positive near 25,000 BTC, reversing from deeply negative levels recorded around June.
That trend indicates that capital is returning, even if demand still isn’t as high as we’ve seen during prior recovery periods. More importantly, it appears derivatives are doing most of the heavy lifting currently.
Still, there may be an environment developing where we could see something like what occurred in May’s move to $82,000.
Normally, Futures demand provides initial momentum as traders rebuild leveraged exposure and respond to improving prices. Yet previous rallies became more sustainable when spot buying expanded alongside Futures activity.
Thus, unless both Spot and Futures increase in demand, derivatives will likely continue to artificially inflate prices upward and then just as quickly reverse downward.
Bitcoin now needs stronger spot participation to turn this early rebound into sustained buying pressure.
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