Bitcoin has witnessed a rally above the $71,000 level over the past day as on-chain data shows demand for the coin has increased significantly.
Apparent demand for Bitcoin has recently risen to notable positive levels
If an analyst in a CryptoQuant Quicktake message explainedDemand for Bitcoin seems to be increasing again lately. The on-chain metric of interest here is the “Apparent question”, which tracks the difference between BTC production and inventory changes.
The only way to produce BTC is to add new blocks to the chain and receive a block subsidy as compensation, so that the production of the asset is equated to the amount the miners receive in rewards each day, known as the Issue.
BTC’s ‘inventory’ can be considered part of the circulating supply, which has been stagnant for over a year. So the inventory changes would be the net number of tokens maturing or leaving this group.
Here is a chart showing the trend in Bitcoin Apparent Demand since the beginning of the year 2024:
The value of the metric appears to have been positive during the last few weeks | Source: CryptoQuant
As shown in the chart above, Bitcoin Apparent Demand had fallen to levels around the neutral point during the previous consolidation phase the asset had gone through. Yet its value has recently risen to notable positive levels.
After the increase, the indicator has reached the same high as in February this year. The chart shows that what then followed was BTC’s rally to a new level all-time high (ATH).
So far, the recent burst in demand has also been accompanied by another rally in the cryptocurrency’s price, pushing the asset above the $72,000 level. Given the trend seen in the first quarter of the year, it is possible that BTC could enjoy further upside potential if apparent demand continues to grow.
In other news, the Bitcoin Energy Value recently surpassed the $100,000 level, as Capriole Investments founder Charles Edwards explained in an after.
The “Energy Value” here refers to a model for the cryptocurrency that calculates its real value as a function of the amount of energy (measured in Joules) expended to produce it. The energy here is of course the energy that miners use to power their computer machines, to perform the task of BTC mining.
Here is the chart for the analyst’s shared metric:
The trend in the BTC Energy Value over the coin's history | Source: @caprioleio on X
The chart shows that this is the first time that the Bitcoin Energy Value has exceeded this level.
BTC price
At the time of writing, Bitcoin is trading around $72,400, up almost 8% in the past week.
Looks like the price of the coin has shot up over the last 24 hours | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, Capriole.com, chart from TradingView.com