The cryptocurrency market‘s latest reality check has arrived. Bitcoin’s demand has taken a nosedive, plummeting from 207,964 BTC on January 1 to a measly 33,587 BTC by month’s end.
Sure, it bounced back above 50,000 BTC in early February and even crossed 100,000 BTC mid-month, but let’s face it – these numbers are still way below previous bull-cycle highs.
The ETF excitement? That bubble’s deflating fast. What started as an impressive 18,000 BTC in net inflows has reversed into outflows of 1,000 BTC.
Those spot ETF investors sitting with a $89,000 cost basis might be getting nervous. And who can blame them? Bitcoin’s already hit a one-month low of $93,000, with analysts warning about a potential tumble to $86,000.
Network activity isn’t helping the situation. It’s fallen to its lowest level in a year, down 17% since November 2024’s peak.
Fewer transactions mean fewer investors are playing in the crypto sandbox. Meanwhile, stablecoin growth – typically crypto’s rocket fuel – has lost its punch. USDT’s market cap growth has nose-dived 92%, from $20.4 billion to a wimpy $1.5 billion.
The sentiment’s not completely dire, though. Some industry experts are still betting on Bitcoin hitting $150,000-$200,000 in 2025.
CryptoQuant’s CEO thinks Bitcoin could drop to $77,000 and still keep its bull market status. Talk about optimism in the face of adversity.
Here’s what’s interesting: 60% of Americans familiar with crypto think cryptocurrency values will rise under a Trump presidency.
Whether that’s wishful thinking or solid analysis is anyone’s guess. Meanwhile, 14% of crypto newcomers plan to jump in this year, while 67% of current owners want to buy more.
Brave souls or eternal optimists? Time will tell.
For now, Bitcoin’s trading in the $93k-$97k range, leading a broader digital asset cooldown.
The market’s sending a clear message: the party’s not over, but someone definitely turned down the music.
The circulating supply of Bitcoin currently stands at 19.52 million coins, which plays a crucial role in determining its overall market value.
