Bitcoin‘s market trajectory is displaying mixed signals: While bullish indicators strengthen, demand in both spot and futures markets is notably waning. CryptoQuant’s Bull Score, a prominent metric measuring market sentiment, has reached a lofty 90 out of 100. Nonetheless, this heightened score hasn’t been mirrored by buying activity, potentially hindering Bitcoin’s short-term bullish continuation, even as American spot Bitcoin ETFs continue to attract investments.
Strong Bull Indicator Contrasts Weak Demand
The Bull Score, which synthesizes on-chain and market data to assess Bitcoin’s current market phase, is nearing its maximum threshold. A major factor driving this surge is Bitcoin’s rise above its 365-day moving average last week. This crossing of a significant long-term average serves as a vital signal confirming the inception of a bull market. However, the demand beneath the surface paints a less robust picture.
Demand data does not portray an equally strong narrative. According to CryptoQuant, Bitcoin’s spot demand has plummeted by approximately 170,000 BTC over the past 30 days. Visible demand, calculated from the new mining supply and the movement of Bitcoin dormant for over a year, has continued its decline throughout September.
In the futures market, the slowdown in demand growth is even more pronounced. Demand, which stood at about 164,000 BTC on September 14, dwindled to a mere 16,000 BTC by September 29, marking a dramatic 90% drop within a fortnight.
Julio Moreno, Head of Research at CryptoQuant, emphasized the challenge of sustaining a rally in the absence of fresh demand. He noted that the persistent weakness in spot demand and the plateau in futures demand growth make it increasingly difficult for Bitcoin to expand its gains in the near term.
Bitcoin ETFs Attract $66.2 Million Inflows
Despite weakening demand, U.S. spot Bitcoin ETFs continue to see net inflows. Data from Farside Investors shows that these funds experienced a net influx of $66.2 million on September 29 alone.
BlackRock’s IBIT fund spearheaded these inflows with $51.1 million, while Ark Invest’s ARKB fund attracted an additional $33.2 million. In contrast, a net outflow of $18.1 million was recorded in Bitwise’s BITB fund, highlighting a nuanced dynamic in investor interest.
