Bitcoin Demand Posts Rare Seven-Year Contraction as Analysts See Final Washout Beginning

CryptoQuant measures aggregate Bitcoin demand using indicators including spot buying and flows through exchanges and funds. Negative demand means new selling pressure exceeds buying capacity. This contraction is the most extreme since 2019, signaling a shift from risk-seeking behavior to a risk-off market and putting the focus on whether Bitcoin can hold long-term support.

The latest CryptoQuant data showed aggregate Bitcoin demand had fallen to negative 650,000 BTC, a rare low in nearly seven years, while U.S. spot Bitcoin ETFs continued to suffer outflows. Analysts said the market’s “final washout” was only beginning. Attention will now turn to whether BTC can halt its decline and establish a bottom near $59,000, confirming that selling pressure is gradually being exhausted.