Bitcoin Rally Shows Signs of Losing Momentum
Bitcoin’s latest rally is showing signs of cooling as buying demand weakens across both spot and futures markets. Bitcoin rose 0.4% to just above $83,300 during Wednesday’s Asian morning hours, but remained below its eight-month high of approximately $87,400.
CryptoQuant, an onchain analysis firm, placed its Bull Score at 90 out of 100. The indicator combines onchain and market data into a single reading and rose after bitcoin moved above its 365-day moving average last week. CryptoQuant treats that move as confirmation that bitcoin has entered a bull market.
Spot Bitcoin Demand Contracts
Despite the strong Bull Score, the buying activity behind bitcoin’s advance is fading. CryptoQuant estimates that spot demand has contracted by approximately 170,000 BTC over the past 30 days.
The firm calculates demand by comparing newly mined bitcoin with changes in the supply of coins that have remained unmoved for at least one year. CryptoQuant calls this measure apparent demand, and the gauge has declined throughout the month. That indicates the market is absorbing fewer bitcoin than are becoming available.
Major Cryptocurrencies Post Modest Gains
Among major cryptocurrencies, SOL and ZEC led the market, each gaining nearly 2% to trade at about $119 and slightly above $1,400, respectively. XRP rose approximately 1% to just below $1.50. Ether, BNB and TRX each added less than 1%, according to CoinDesk data.
Futures Speculation Drops Sharply
Demand in the futures market is cooling even faster than spot demand. Growth in speculative futures demand fell from about 164,000 BTC on Sept. 14 to 16,000 BTC on Sept. 29, a 90% decline over 15 days.
The sharp reduction in futures activity suggests that traders are taking on substantially less speculative exposure even as bitcoin remains near elevated price levels. Together with the decline in spot demand, the data points to a rally that is running out of buyers.
Why This Matters
CryptoQuant’s indicators suggest that bitcoin’s technical move into bull-market territory has not been matched by sustained demand from spot and derivatives traders. If fewer market participants continue absorbing newly available bitcoin, the rally may face increasing difficulty extending its gains. The latest figures do not overturn the Bull Score’s positive reading, but they highlight a growing gap between bullish market structure and weakening purchasing momentum.
Frequently Asked Questions
What is CryptoQuant’s Bull Score?
CryptoQuant’s Bull Score is a reading out of 100 that combines onchain and market indicators. It currently stands at 90 out of 100.
How much has bitcoin spot demand declined?
CryptoQuant estimates that spot demand has shrunk by about 170,000 BTC over the past 30 days.
How much has speculative futures demand fallen?
Growth in speculative futures demand dropped from about 164,000 BTC on Sept. 14 to 16,000 BTC on Sept. 29, representing a 90% decline in 15 days.