Bitcoin Rebounds to $64,600 as Liquidity Shrinks, Supporting No New Demand

On August 6, CryptoQuant analyst Axel Adler Jr. pointed out that Bitcoin has rebounded to $64,600, but the flow indicators have not confirmed any new demand. The demand/issuance ratio stands at -5.43, and the net flow of coin age is -85,500 BTC, both of which have rebounded from July's lows but remain in negative territory. A demand/issuance ratio below zero indicates that the rate of young coins shrinking exceeds the amount of new issuance, a trend that has persisted for about five months. A negative net flow of coin age means that 85,500 BTC have moved into the category of being held for over a year in the past 30 days, indicating a continued contraction in liquidity supply. The analyst noted that the current rebound is primarily supported by the contraction of liquidity supply and accumulation behavior, rather than driven by new demand. A return of both indicators above zero would signal improvement, and the demand/issuance ratio must remain above 1 to confirm a true recovery.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.