Recent analytics from CryptoQuant indicate a concerning imbalance in the Bitcoin market: new demand for BTC is lagging behind the continuous supply influx from miners and long-term holders (LTH). The firm's proprietary "Apparent Demand" metric—a key gauge for sustainable buying interest—has once again turned negative, signaling a rising risk of price correction and market instability.

According to the latest data, the influx of freshly mined coins and the increased selling activity from LTHs—often considered "smart money" due to their historical tendency to time market peaks—are exerting substantial selling pressure. This oversupply dynamic is pushing the available coins for sale higher, which could undermine market support and stifle the prospects for a short-term rally

"Such an imbalance between supply and demand creates a high-risk environment for a near-term price correction and exposes the underlying weakness of the market," CryptoQuant analysts warn. The increase in sales from long-term holders—whose behavior often signals the approach of local price tops—further amplifies these downside risks.

The report also highlights that Bitcoin’s available supply for sale continues to rise, making any bullish momentum increasingly difficult to sustain. In this context, support levels may prove much weaker than anticipated, potentially triggering sharper pullbacks if demand fails to absorb the excess coins.

Market Implications: Downside Risks and Vulnerable Support

The current market setup presents a challenging landscape for Bitcoin investors. While digital assets have recently shown resilience amid global macro shifts, the persistent negative demand signals from CryptoQuant reinforce the idea that rallies will likely face selling pressure from both miners and seasoned holders.

Earlier reports noted that average Bitcoin inflows to Binance have dropped below typical bear market thresholds, further hinting at diminished speculative appetite and growing market vulnerability.