The decline in bitcoin’s price is accompanied by weakening demand from investors and traders. CryptoQuant has identified a troubling trend in the bitcoin market.
CryptoQuant analysts have recorded an extreme contraction in bitcoin demand. Over the past 30 days, the total growth in demand on the spot market and perpetual futures market has fallen to nearly -650,000 BTC▼$61,764.00.
Hot topic: BitMEX Co-Founder Says AI Bubble Could Drag Bitcoin Price Lower
This level has only been seen three times since 2019. It is one of the rarest and most alarming signals in the entire history of observations.
Contents
What Does the Current Bitcoin Market Dynamic Mean?
Importantly, the contraction is happening simultaneously in both the spot market and the perpetual futures segment. This suggests that the weakness is not limited to leveraged traders—organic buying demand is also declining.
According to analysts, this market structure leaves Bitcoin (BTC) with fewer new buyers and less ability to absorb selling pressure.
At the time of publication, bitcoin trades at approximately $62,650. The coin has fallen just under 1% over the past 24 hours and nearly 10% over the past week.
Read more: What Is TradeFy Crypto? Is The Platform Legit or a Risk for Investors?
Historical Context for BTC
CryptoQuant notes that such extreme readings have not always coincided with an immediate bottom formation:
- The first such drop in demand occurred before the March 2020 COVID crash.
- During the actual bottom, the indicator returned to a higher support zone.
- A similar pattern was seen in the 2022 bear market.
The current situation more closely resembles the beginning of the final cleansing phase of the market rather than a confirmed reversal.
Potential Scenario for BTC Price
Analysts expect volatility to increase in the near term, followed by a possible prolonged period of “price anesthesia“—weak momentum, compressed activity, and extended sideways movement. Such a period, they believe, could be psychologically harder for investors than the sell-off itself.
The market remains in a zone of high uncertainty. The Crypto Fear and Greed Index is at extremely low levels, which often precedes a relief rally. However, sustained recovery will require the return of meaningful demand.
Learn more: Best Crypto Faucets in 2026 — Top 5 Platforms That Still Pay Free Crypto
