CryptoQuant Cited Weak Spot Demand as the Reason Behind Bitcoin’s Correction

• Bitcoin demand remains negative, and the Coinbase Premium Index is mostly in negative territory, CryptoQuant said.
• Bitcoin open interest has fallen by nearly 10% since September 22 — from $28.8 billion to $26 billion.
• Meanwhile, the amount of bitcoin held in spot ETFs continues to rise, and the $69,000 zone could become a key support level.

CryptoQuant analysts linked bitcoin’s recent pullback to weak spot demand and declining activity in the derivatives market. At the same time, they noted that record bitcoin ETF holdings continue to climb, signaling that demand via spot funds remains intact.

Spot and futures market demand is weakening

According to CryptoQuant, the Bitcoin Apparent Demand metric remains negative. The Coinbase Premium Index is also mostly in negative territory, pointing to muted buying pressure from U.S. investors.

Derivatives market activity has also cooled. Since September 22, bitcoin’s price has stayed roughly flat, while open interest has dropped by nearly 10% — from $28.8 billion to $26 billion, the statement said.

Analysts believe this indicates limited willingness among futures traders to take on more risk amid weak spot demand.

Meanwhile, the uptrend in record bitcoin ETF holdings remains in place. CryptoQuant views this as a positive signal, indicating steady demand for the asset through spot funds.

If the current bull cycle holds, the ongoing pullback could present an opportunity for medium- and long-term buyers. The $69,000 area — where the average acquisition price for short-term bitcoin holders sits — could act as a key support level, the experts emphasized.

The market is approaching a new uptrend cycle

Separately, CryptoQuant analyzed the ratio of bitcoin supply in loss versus in profit. According to the analysts, at the bottom of previous down cycles these metrics crossed, and then diverged again as the market transitioned into an uptrend cycle.

CryptoQuant estimates that the current structure fits this pattern. However, there is one difference from prior cycles: this time, bitcoin did not fall below the realized price while forming the bottom.

Even so, analysts believe the overall picture supports viewing the market’s current state as a transition toward a new uptrend, or bull, cycle.

As a reminder, Grayscale previously said that without the 10 best days, bitcoin’s three-year return would have dropped to 27%.

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