Bitcoin Spot Demand Crashes to -170,000 BTC: What Detail is Keeping the Market Standing?

CryptoQuant data shows that Bitcoin (BTC) spot demand has retreated back to the -170,000 BTC level following a recovery in early July, and the market stands in a fragile balance supported by the derivatives market.

The cryptocurrency market leader, Bitcoin (BTC), has recently faced an interesting contradiction between spot demand and price performance. CryptoQuant analysts’ on-chain data proves that investors’ direct buying appetite has sharply decreased, yet the price has not yet taken a deep hit. This scenario suggests that the market is being sustained by technical movements in the derivatives markets rather than a healthy and organic uptrend.

Risk of Structural Fragility in the Bitcoin Market

When examining chart data, Bitcoin’s 30-day spot demand showed improvement to the -80,000 BTC level at the beginning of July, but it is now seen to have worsened to the -170,000 BTC level. Despite this sharp drop in spot demand, the fact that the price is holding around $64,000 is largely possible due to short covering in the derivatives market and a decrease in selling pressure. However, this situation indicates that the market is devoid of fundamentals and has a structure highly sensitive to external factors.

Experts emphasize that derivatives demand alone cannot create a lasting bull market. If spot selling gains momentum again, the possibility of this artificial balance in the market breaking and the price being rapidly pulled down remains on the table. If organic spot demand support does not arrive, even if the current technical bounce continues for a while, it could eventually end with a massive long liquidation wave—the forced closing of buy-side transactions as the price falls. This risky structure proves that we have entered a period where investors must remain cautious.