On-chain data shows that demand for Bitcoin is increasing markedly, with Bitcoin witnessing a rally above the $71,000 level in the past day.
Bitcoin’s apparent demand has recently surged to significant positive levels
As explained by an analyst in a post on CryptoQuant Quicktake, demand for Bitcoin seems to have increased again recently. The on-chain metric of interest here is “apparent demand,” which tracks the difference between BTC production and changes in its inventory.
The only way to generate BTC is to add new blocks to the chain and receive block subsidies as compensation. Therefore, the production of the asset will be equivalent to the amount that miners are getting paid each day, known as issuance.
BTC “inventory” can be thought of as a portion of the circulating supply that has been sitting idle for over a year. Therefore, the change in inventory will be the net number of tokens that mature into or exit this group.
Here is a graph showing the apparent demand trend for Bitcoin since the beginning of 2024.
The value of the metric appears to have been positive over the past few weeks. Source: CryptoQuant
As shown in the chart above, Bitcoin’s apparent demand declined to levels near the neutral mark during the early stages of consolidation that the asset passed through. Still, its value has increased to notable positive levels recently.
After the rise, the indicator reached the same high as in February this year. From the chart, we can see that what followed at that time was BTC’s rise to an all-time high (ATH).
So far, the recent explosion in demand has also been accompanied by a new rise in the price of the cryptocurrency, pushing the asset above the $72,000 level. Given the trends that occurred in the first quarter of this year, BTC could rise further if apparent demand continues to grow.
In other news, Bitcoin’s energy value recently crossed the $100,000 level, as Capriole Investments founder Charles Edwards explained in an X post.
“Energy value” here refers to a model for cryptocurrencies that calculates fair value as a function of the amount of energy (measured in Joules) expended to generate the cryptocurrency. The energy here is, of course, the energy that miners use to power their computing machines and perform the tasks of BTC mining.
Here is a chart of the metrics shared by the analyst:
Trends in BTC energy value over the history of the coin | Source: @caprioleio by X
The graph shows that this is the first time Bitcoin’s energy value has exceeded this level.
BTC price
As of this writing, Bitcoin is trading around $72,400, up almost 8% over the past week.
It looks like the price of the coin has skyrocketed in the past 24 hours | Source: BTCUSDT on TradingView
Featured images from Dall-E, CryptoQuant.com, Capriole.com, charts from TradingView.com
