Bitcoin demand has significantly decreased as tensions in the Middle East escalated, particularly following Iran's missile strikes on Israel. According to CryptoQuant data, the Net Taker Volume metric has seen a notable decline since these events.
CryptoQuant analyst J.A. Maartunn stated, "Buying pressure has remained subdued since the Iran strike." The drop in net taker volume by over $150 million indicates significant selling pressure, while the volume has not exceeded $100 million since Tuesday, reflecting a lack of strong buying momentum.
André Dragosch, Head of Research - Europe at Bitwise, observed a negative trend in net buying volumes on bitcoin spot exchanges over the past three days. He noted signs of short-term seller exhaustion, with an increase in long bitcoin futures liquidations, the highest since August 5, when bitcoin hit a recent low.
Despite the decline in prices, Ayush Tripathi, Bitwise Research Analyst, highlighted an increase in the supply of bitcoin held by long-term holders—those who have held their bitcoin for at least 155 days. This suggests that while short-term demand has weakened, confidence in bitcoin as a long-term investment remains strong.
QCP Capital analysts believe the current downturn is temporary, citing a strong correlation between cryptocurrency performance and U.S. stock markets. They predict that as equities recover, crypto markets will follow. They pointed to the latest U.S. ADP National Employment report indicating stronger-than-expected job growth, which could influence the Federal Reserve's stance on interest rates.
In cryptocurrency trading on Thursday, investors were cautious as they anticipated a potential Israeli response to Iran's missile strikes. Bitcoin has maintained a position just above the $60,000 mark, while Ethereum fell below $2,400. As of 12:30 p.m. ET, Bitcoin's price was approximately $60,286, reflecting a 2.8% decline in the past 24 hours.
Disclaimer: The Block is an independent media outlet providing news, research, and data. This article is intended for informational purposes only and should not be considered legal, tax, or investment advice.
