David Edwards
The apparent demand for bitcoin has fallen to its lowest point since 2025, going into negative territory as traders and investors continue to exercise caution in the face of macroeconomic challenges. Demand fell to negative 142 on March 13, the first negative reading since September 2024, according to CryptoQuant’s Bitcoin Apparent Demand indicator.
Demand for Bitcoin Drops as Investors Move to Safe Havens
Demand for bitcoin increased steadily starting in September 2024, reached a peak in December 2024, and then began to gradually fall. Demand has been declining despite staying positive until early March 2025, which is indicative of the mood of the market as a whole.
Concerns about a protracted trade war, geopolitical unrest, and persistently high inflation—which, albeit dropping, is still higher than the Federal Reserve’s 2% target—are the main causes of the decline. These elements have caused traders to move away from riskier assets like Bitcoin and cryptocurrencies and toward cash and government securities.
Due to economic uncertainty, cryptocurrency markets are under pressure to sell.
Macroeconomic worries replaced market excitement after the White House Crypto Summit on March 7. Bitcoin’s price fell right after following a March 12 CPI inflation report that was lower than anticipated, indicating further uncertainty.
Since February, cryptocurrency exchange-traded funds (ETFs) have also experienced a decline, with withdrawals occurring for four weeks in a row. CoinShares reports that outflows from cryptocurrency exchange-traded funds (ETFs) have totaled $4.75 billion over the previous month, with $756 million coming from investment vehicles specifically focused on Bitcoin.
Crypto prices have fallen as a result of panic selling sparked by this negative market mood and recession worries.
The price of bitcoin falls below important support levels.
Excluding Bitcoin (BTC) and Ethereum (ETH), the Total3 Market Cap has fallen 27% since January 20 from over $1.1 trillion to over $795 billion. In a similar vein, Bitcoin’s price has dropped by almost 22% from its peak of over $109,000 to its present levels.
