Bitcoin is trading near $63,000 after falling to around $59,000 earlier this week, and some data points to trouble for the bulls, with a possible decline to levels last seen in early 2024.
The largest cryptocurrency is now just 9% above its realized price of around $53,600, according to on-chain analytics firm CryptoQuant. The realized price is the average of the prices at which the coins last moved. When the market price gets close, the average holder barely makes a profit. This level marked significant bear market lows in past cycles.
But the problem is demand.
Total demand for Bitcoin fell by 652,000 BTC last week, the biggest contraction since January 2022, CryptoQuant said. Demand for ETFs is also falling at the fastest rate since US spot Bitcoin funds launched in January 2024, showing that the institutional supply that fueled this cycle has turned into selling.
Sellers have crystallized 187,000 BTC in losses over the past 30 days. This is painful, but still well below the 400,000 BTC loss peak in February and the 1.2 million BTC seen around the November 2022 cycle low.
