Bitcoin faced a dramatic downturn, experiencing a significant selloff to its lowest value since October 2024. The cryptocurrency slid to $59,073 on the last trading day of the week, breaking below its previous low in February of $60,062.
Impact of Strong U.S. Employment Figures?
The decline was primarily triggered by strong U.S. employment figures released last Friday, heightening the possibility of sustained high interest rates. This scenario pushed U.S. Treasury yields and the dollar index upwards, adversely affecting risk-based assets including stocks and cryptocurrencies.
In response to this correction, Bitcoin stabilized at around $61,000 during Asian trading hours on Saturday. Despite this, it recorded a 1.3% daily loss and saw a substantial weekly drop of 16%. Consistent Bitcoin ETF outflows throughout the week further contributed to the bearish momentum, intensifying the downward movement.
Is This Cycle Witnessing Unprecedented Demand Drop?
According to Julio Moreno from CryptoQuant, the recent downturn is a clear indication of a bear market, marking a new low in the Bitcoin cycle. He highlighted that this is the most pronounced demand contraction within this market phase.
Julio Moreno, at the helm of CryptoQuant’s research division, commented that the recent price action corresponds to the steepest contraction seen in this cycle and has established a new bear market low.
CryptoQuant’s data indicates that Bitcoin’s global demand is at its lowest since the previous bear market ended. Demand contracted by 501,000 BTC, the most significant reduction observed thus far in this cycle, with a rapid decline similar to that following the Terra and Luna collapse.
Over the past month, total Bitcoin demand, encompassing speculative and spot trades, decreased by 501,000 BTC. This represents the fastest monthly drop since May 2022. Spot demand alone fell by 272,000 BTC over the last 30 days, and futures-driven demand saw a decline of 229,000 BTC.
• The contraction indicates a sharp fall in market participation, similar to previous bearish phases.
• Both spot and futures demand experienced synchronized downturns.
• Recent data shows the lowest cycle demand since the post-terra crisis.
Historical analysis reveals similar trends in November 2023 and April 2025, with market observers now closely monitoring this phase of waning demand. Historically, periods of reduced interest have occasionally been precursors to market shifts.
