Bitcoin’s price has recently dropped, and it might fall back to around $70,000 as the market remains unsteady. This decrease in price movement is leading to less interest from investors and traders, which could cause further price declines in the short term.
Demand Patterns For Bitcoin Are Undergoing A Change
Bitcoin is still facing strong selling pressure, but a small but important change is happening in the market. The recent price drops suggest that demand for Bitcoin is starting to weaken.
Julio Moreno’s recent analysis of Bitcoin demand shows that overall interest in BTC began to decrease on May 18th. This is a change from the consistent growth seen since early March, which was largely fueled by speculation.
As buying interest weakens and speculative trading decreases, there’s growing uncertainty about whether the market will soon reverse direction or simply stabilize. Moreno pointed out that speculative demand – shown by the blue bars on the chart – peaked when prices neared $80,000, but has since slowed down considerably.
Currently, immediate demand for Bitcoin (shown as grey bars on the chart) is decreasing a bit more quickly than demand from speculators is slowing down. These changing demand trends could be a key factor in determining whether Bitcoin’s price goes up or down next.
BTC Held At Loss Matching Past Levels
As Bitcoin’s price declines, more attention is being paid to the amount of Bitcoin currently held at a loss. According to data analyst Darkfost, long-term Bitcoin holders are currently holding 5.7 million BTC at a loss – a level not seen since the lows of previous bear markets.
The amount of Bitcoin held long-term was 5.96 million in 2015, 5.8 million in 2019, and increased to 6.8 million in 2022. Long-term holders felt the biggest impact during the last market downturn. However, the recent 52% drop in Bitcoin’s price is smaller than the declines seen in previous bear markets.
According to Darkfost, a significant amount of Bitcoin – likely between $80,000 and $126,000 worth – appears to have changed hands recently. This suggests that newer, long-term Bitcoin holders may be experiencing losses. While this trend isn’t fully confirmed, data was slightly affected by a large transfer of 800,000 BTC from Coinbase on November 21st and 22nd.
Around April 21st and 22nd, we saw a large increase of over 740,000 Bitcoin being moved. Data from Bitbo shows these transactions were held for at least 155 days before being moved. When accounting for this long-term holding period, the total value of Bitcoin potentially remains around 4.93 million, which is a historically important number.
Over the next few days, Darkfost predicts that metrics tracking long-term holders (LTHs) on platforms using a six-month holding period will likely start to change noticeably. Once this happens, Bitcoin that was recently trading around $84,500 will officially be considered long-term held, rather than short-term.
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2026-05-20 23:09