As per recent data from analytics firm CryptoQuant, Bitcoin’s (BTCUSD) perceived demand has plummeted to its lowest level since 2025, venturing into the negative territory. This downward trend is linked to traders and investors adopting a conservative stance toward risk-prone assets amidst global economic uncertainty.
The Bitcoin Perceived Demand metric by CryptoQuant reveals a severe drop to a negative 142 on March 13. Following a positive trajectory since September 2024 and reaching a peak around December 2024, the demand dipped considerably and remained on the decline since March 2025.
Concerns over an extended trade conflict, geopolitical instability, and persistently high inflation rates above the Federal Reserve’s 2% target are prompting traders to withdraw from risky assets and seek refuge in safer options like cash and government securities.
Post-election enthusiasm has fizzled out in the wake of the White House Crypto Summit on March 7, which left investors with mixed sentiments. The realities of economic uncertainty and political machinations are hitting home.
Contrary to the underwhelming CPI inflation data released on March 12, Bitcoin’s price fell sharply after the announcement. Crypto Exchange-Traded Funds (ETFs) have seen four consecutive weeks of outflows since February, with traditional financial investors seeking safer investment avenues.
Data from CoinShares indicates that crypto ETFs have seen an outflow of $4.75 billion over the past month, including $756 million from BTC investment vehicles alone.
Miserable market sentiment coupled with recession fears have spurred a panic sell-off, causing a significant drop in crypto prices. Since President Trump’s inauguration on January 20, the Total3 Market Cap, excluding Ethereum (ETH) and BTC, has plunged over 27% from $1.1 trillion to around $795 billion.
Bitcoin’s price too has experienced a significant dip of over 22% from a peak of $109,000. Since March 9, Bitcoin has been trading below its 200-day exponential moving average (EMA), with occasional dips below the 200-day EMA in February.
Bitcoin’s Average True Range (ATR), an indicator of volatility, now stands at over 5,035, suggesting considerable price fluctuations as the market contends with macro factors. According to crypto analyst Matthew Hyland, Bitcoin needs to secure a weekly close above $89,000 to avoid a further correction down to $69,000.
This article does not provide investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
