Bitcoin is trading near $63,000 after falling to around $59,000 earlier in the week, and some data points to pain ahead for bulls, with a possible drop to levels last seen in early 2024.
The largest cryptocurrency is now just 9% above its realized price of around $53,600, according to onchain analytics firm CryptoQuant. Realized price is the average of the prices that the coins last moved to. When the market price comes close, the average holder is barely in profit. That level has marked major bear market floors in previous cycles.
The problem, however, is demand.
Total bitcoin demand fell by 652,000 BTC last week, the biggest contraction since January 2022, CryptoQuant said. Demand from ETFs is also falling at the fastest pace since US spot bitcoin funds debuted in January 2024, showing that the institutional bid that drove this cycle has sold off.
Sellers crystallized 187,000 BTC in losses over the past 30 days. That’s painful, but still well below the 400,000 BTC loss surge in February and the 1.2 million BTC seen around the November 2022 cycle bottom.
