Bitcoin (BTC)’s recent uptick in price might not be attributed to heightened demand among investors, as on-chain data analytics firm CryptoQuant reveals surprising weakness in the asset’s spot demand.

According to recent data from the firm, Bitcoin spot demand has slowed down from the high pace of previous drops, but it is still trending negatively as it has continued to fall — decreasing by 146K Bitcoin in the last 30 days.

This negative momentum has prevailed despite the ongoing market rally that saw the price of the leading cryptocurrency, Bitcoin, regain previous losses while settling above the $90,000 mark on April 22.

Bitcoin has led the market’s recent rally, with its price surging as high as $91,700 from the low of $87,031 experienced during the early hours of the day. Data from CoinMarketCap shows a 4.85% surge in its price and a notable 10.26% surge in trading volume.

However, Bitcoin’s broad demand momentum, which monitors and tracks buying activity from new investors against existing holders, has continued to decline, sparking concerns among investors about Bitcoin’s future returns.

The analytics firm revealed that Bitcoin’s demand momentum is now down by 642,000 BTC, the lowest level it has reached since October 2024. This suggests that investors are hesitating to acquire the token amid suspected early bear market trends.

This metric has threatened the sustainability of Bitcoin’s bull run, as historical trends show that sustained appreciation in Bitcoin’s price is often supported by both rising demand and strong momentum.

Hence, the firm has warned that Bitcoin might not resume a sustainable rally if both the Bitcoin spot demand and the broad demand momentum do not stabilize and return to steady positive growth.

According to CryptoQuant, the plummeting interest in Bitcoin’s recent demand is evident in the stable U.S.-based spot Bitcoin ETF flows. This stability in Bitcoin ETF flows has been noticed since late March, where it has consistently moved between -5,000 and +3,000 BTC per day.

Although Bitcoin has shown strength in other metrics, the negative demand momentum suggests reduced interest in Bitcoin compared to previous bull cycles. As such, this has sparked concerns among existing holders and investors, as large investors still hope for further rallies to maximize gains.