Bitcoin (BTC) Apparent Demand Indicator Shows a Sharp Rebound in Buying Interest

Bitcoin ($BTC) is seeing a noteworthy rebound in buying interest. As per the data from the prominent CryptoQuant analyst “IT Tech,” the Apparent Demand Indicator of Bitcoin has shown a sheer and influential rebound following an extended phase of pessimism.

CryptoQuant analyst "IT Tech" has noted a rebound in buying interest for Bitcoin (BTC). According to the analyst, the Apparent Demand Indicator has shown an interesting rebound after an extended period of pessimism.

A strong bounce from extreme negative values (below -200K BTC) suggests that previously dormant capital is rotating back in. By @IT_Tech_PL pic.\_鵺

Apparent Demand is calculated by taking the change in 1 year inactive supply and adding back regular block reward. It’s a proxy for the strength of demand in the ecosystem (positive values suggest capital is flowing into Bitcoin, while negative values suggest capital is flowing out of Bitcoin). When the indicator is in a deep negative zone (below -200K BTC), it suggests that investors are largely absent and capital is not flowing into the ecosystem. Conversely, when the indicator is in the positive zone, it suggests that investors are active and capital is flowing into the Bitcoin ecosystem.

In recent weeks, the indicator has been in a deep negative zone, with the metric staying below -200K BTC. However, in a sudden turnaround, the indicator has now spiked back into the positive zone. This surge in demand may be linked to the recent recovery in Bitcoin’s price, which has seen the cryptocurrency break through the $87K mark.

The crypto analyst noted that this upward momentum is supported by massive on-chain activity rather than just speculative trading. The Apparent Demand indicator highlights a significant return of capital to the Bitcoin ecosystem. With Bitcoin regaining investor interest, the wider implications are promising.

News data source: kdj.com

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