Bitcoin's Apparent Demand Hits Lowest Point in 2025 Amid Macroeconomic Turmoil

Bitcoin’s price struggles to reclaim the $100,000 mark as macroeconomic uncertainty continues to weigh heavily on market sentiment. According to data from CryptoQuant, apparent demand for Bitcoin has dropped to its lowest point in 2025, dipping into negative territory. This shift marks a stark contrast to the relatively positive demand figures observed in late 2024 and early 2025.

Declining Demand as Market Sentiment Worsens

As of March 13, the Bitcoin Apparent Demand metric fell to -142, signaling a significant decrease in demand for the digital asset. Apparent demand had been on the rise since September 2024, peaking in December, but the trend reversed in early 2025, with demand steadily declining throughout the year. This drop is attributed to heightened caution among investors and traders, who are shifting away from risk-on assets like Bitcoin in response to ongoing geopolitical tensions and persistent macroeconomic uncertainty.

The global financial landscape remains fragile, with inflation still above the Federal Reserve’s 2% target, trade war concerns, and geopolitical instability leading many investors to seek safer havens. As a result, Bitcoin and other riskier assets have become less attractive, with cash and government securities drawing more interest from traditional investors.

Market Dynamics Amid Geopolitical and Economic Pressures

The broader market sentiment has also been deeply impacted by macroeconomic developments. While the March 12 CPI inflation data was lower than expected, the positive news did little to boost Bitcoin’s price. Instead, Bitcoin experienced an immediate decline following the announcement. This reflects the current market environment where even favorable economic data is overshadowed by broader concerns over global economic stability.

Crypto exchange-traded funds (ETFs) have seen significant outflows in recent weeks. Over the past four weeks, outflows from crypto ETFs totaled $4.75 billion, with Bitcoin-focused investment vehicles recording $756 million in outflows for the month-to-date. These figures underscore the growing reluctance of traditional investors to commit to crypto in the face of mounting economic pressure.

Crypto Market Struggles Amid Recession Fears

The post-election optimism surrounding the White House Crypto Summit on March 7 quickly faded as investors grew wary of the impact of geopolitical and economic uncertainty. The surge of negative sentiment triggered a wave of panic selling, sending cryptocurrency prices lower. Bitcoin’s price has fallen over 22% since reaching a peak of more than $109,000 earlier this year, trading around $84,000 as of mid-March.

In addition to Bitcoin's struggles, the Total3 Market Cap—an index that measures the total crypto market capitalization excluding Bitcoin and Ethereum—has plunged by over 27%. This drop, from a high of $1.1 trillion to approximately $795 billion, highlights the broader challenges facing the cryptocurrency market.

Key Technical Indicators Signal Increased Volatility

Technical indicators suggest heightened volatility in the Bitcoin market. Bitcoin has been trading below its 200-day exponential moving average (EMA) since March 9, with occasional dips below this key support level in February. Additionally, Bitcoin's Average True Range (ATR), a measure of price volatility, is currently over 5,035, signaling significant price swings as traders react to macroeconomic developments.

Crypto analyst Matthew Hyland recently warned that Bitcoin must secure a close of at least $89,000 on the weekly chart to avoid a deeper correction. Without this key level of support, Hyland predicts Bitcoin could fall further, potentially reaching as low as $69,000.

Conclusion

As Bitcoin grapples with reduced demand, increased volatility, and broader market uncertainty, the outlook for the cryptocurrency remains clouded. Geopolitical tensions, economic instability, and investor caution are weighing heavily on the asset’s performance. For Bitcoin to regain its momentum and reach the $100,000 price level, it will need to navigate these challenges and restore investor confidence in the face of a turbulent global economic landscape.