Crypto Market Dips as Bitcoin Demand Turns Negative in 2025

Crypto Market Dips- Economic Worries Lead to Reduced Demand

Crypto Market Dips– Bitcoin’s demand has reached its lowest point in 2025, signaling a shift in investor sentiment amid growing macroeconomic concerns. According to CryptoQuant’s Bitcoin Apparent Demand metric, demand for BTC dropped to a negative 142 on March 13, 2025. This marks a stark contrast to the positive demand levels seen since September 2024, which peaked in December 2024 before steadily declining.

Bitcoin’s apparent demand had remained positive until the start of March 2025, but concerns over a potential trade war, ongoing geopolitical tensions, and inflation levels that remain stubbornly high have caused many traders to step back. While inflation has cooled, it continues to hover above the Federal Reserve’s 2% target, causing a shift away from risk-on assets, such as Bitcoin, toward safer alternatives like cash and government bonds.

The recent decline in Bitcoin demand is part of a broader trend affecting the cryptocurrency market. Despite the mixed reactions to the White House Crypto Summit on March 7, market sentiment remains cautious. Even lower-than-expected inflation figures released on March 12 failed to prevent a drop in Bitcoin’s price, signaling a lack of confidence among investors.

Additionally, crypto exchange-traded funds (ETFs) have seen significant outflows. According to CoinShares, crypto ETFs experienced a combined outflow of $4.75 billion in the past month, with BTC-focused investment vehicles losing $756 million in the same period.

Market Overview: A Downturn for Crypto

The overall market capitalization of crypto assets, excluding Bitcoin and Ether, has dropped by over 27% since the Trump inauguration on January 20, 2025. The Total3 Market Cap, which measures the market excluding these two dominant cryptocurrencies, fell from over $1.1 trillion to approximately $795 billion.

In these uncertain times, many investors are becoming more cautious, leaving Bitcoin and other cryptocurrencies vulnerable to further declines in the near future.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.