Bitcoin demand reaches level that only occurred 3 times since 2019

Bitcoin demand has fallen to a level that has only been reached three times before since 2019. Onchain analysis platform CryptoQuant publishes new data showing that both the spot market and the perpetual futures market are contracting simultaneously, a rare combination that historically coincides with critical turning points in the market. The Bitcoin price is currently at $62.8K, a decline of 0.4% in the past 24 hours.

Bitcoin is available at OKX and Bybit.

Spot and futures decline simultaneously

CryptoQuant’s charts show that the combined demand growth over a 30-day period is heading towards minus 600,000 Bitcoin. This situation, in which both spot buyers and futures traders withdraw simultaneously, previously occurred around the bottom of 2019, the crash of early 2022 and the lows of 2023. In all those cases, either a sharp further decline or a strong reversal followed.

The analyst behind the report, MorenoDV, states that the current situation looks less like a confirmed reversal and more like the start of a final purge phase. This aligns with previously observed pressure in the derivatives market and signals that short-term holders are massively sending Bitcoin at a loss to exchanges.

Historical pattern points to critical moment

The two charts show red circles at exactly the moments when this rare signal previously appeared. Strikingly, total demand is now moving towards the same absolute low point as during the worst corrections of recent years. This makes the current moment technically very relevant for anyone monitoring the market structure.

At the same time, caution is warranted. Also the Bitcoin MVRV ratio is approaching a historical undervaluation zone, painting a similar picture. Whether these are signals of an approaching bottom or further downward pressure remains uncertain. At the very least, the current data shows that the market is in a phase that historically rarely ends neutrally.