Bitcoin demand drops, price falls below $77K

Bitcoin’s onchain demand has turned negative again after a brief recovery in August, with its price slipping below $77,000 as global markets face a broad sell-off in bonds and equities.

The shift follows weeks of volatility driven by macroeconomic uncertainty, including rising U.S. Treasury yields and concerns over Federal Reserve policy. Bitcoin, often seen as a hedge against traditional market instability, has struggled to maintain momentum as investors pull back from risk assets. The drop in demand signals weakening buyer interest, a key metric tracked by analysts to gauge long-term market health.

Onchain data shows that demand indicators, which measure the flow of Bitcoin into wallets of long-term holders, have dipped back into negative territory. This suggests more investors are moving coins to exchanges or holding off on purchases, adding pressure to the price. The decline comes as Bitcoin tests support levels, with traders watching closely for signs of a deeper correction or potential rebound.

If demand remains weak, Bitcoin could face further downside pressure, especially if broader financial markets continue to retreat. Analysts note that a sustained drop in onchain demand often precedes prolonged price consolidations or bearish trends. However, some traders see the current pullback as a temporary setback, with key support levels around $75,000 holding firm for now.