Key Points:
Individual investor interest in bitcoin fell to a five-month low.
Analysts attribute variations in Bitcoin demand to a number of variables, including CPI.
At $67,350, bitcoin is down 3.19% from the previous day’s close.
Since January, when prices rose by 75% over the next two months, the average demand for bitcoin among individual investors has dropped to the lowest point in the past five months. According to data released on June 10 by CryptoQuant author Axel Adler, the average monthly change in individual investor demand for bitcoin over the past 30 days has fallen to minus 17%.
What is happening on the bitcoin front?
According to Adler, Bitcoin fell by a comparative 18% in January last year, rising from $40,000 to $70,000. After the approval of a spot Bitcoin exchange-traded fund by the US government, the price of Bitcoin rose even more, reaching its peak in mid-March. The price of Bitcoin is currently at an all-time high of $73,679, and Adler has released the following statement: To get the most recent news on technology, visit NEWSLINKER.
“I have watched that this gather responds rapidly to any adjustments in the market.”
Last month, Adler utilized the same data to indicate that demand fell by 31% to -14.50% in the 17 days preceding May 24. He stated that the initial approval of spot Ethereum ETF funds has likely increased interest in GameStop (GME) and Ethereum. Analysts previously argued that changes in Bitcoin demand were caused by a variety of factors, including the US Consumer Price Index (CPI), which measures inflation.
Conventional savings and term deposits become less profitable when the CPI declines and interest rates fall, which attracts investors to riskier assets like Bitcoin.
Details on the Matter
In May, 10x Research lead researcher Markus Thielen said that for Bitcoin to reach an all-time high, the CPI data on June 12 would have to fall by 3.3%. One threshold that investors were carefully tracking, the all-time high of $69,000 set in November 2021, was broken by Bitcoin on June 11. At the time of writing, CoinMarketCap showed that the price of Bitcoin was $67,350, down 3.19% over the previous day.
The unexpected plunge wiped out $52.87 million in Bitcoin long positions in the futures market the day before. According to CoinGlass data, Open Interest (OI) stayed over the frequently observed $35 billion threshold. Despite investors’ expectations that Bitcoin will surge above $70,000 after dropping below it on June 8, it has yet to do so.
