Apparent demand for Bitcoin (BTC) has hit the lowest level in 2025, dropping down into negative territory, as traders and investors take a cautious approach to risk-on assets due to macroeconomic uncertainty.

According to CryptoQuant’s Bitcoin Apparent Demand metric, demand for Bitcoin has dropped down to a negative 142 on March 13.

Bitcoin’s apparent demand has been positive since September 2024, peaking around December 2024 before beginning the slow descent back down.

However, demand levels stayed positive until the beginning of March 2025 and have continued to decline since that point.

Fears of a prolonged trade war, geopolitical tensions, and stubbornly high inflation, which is cooling but is nevertheless above the Federal Reserve’s 2% target, are causing traders to take a step back from riskier assets and into safe havens such as cash and government securities.

Bitcoin apparent demand. Source: CryptoQuant

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Crypto markets hemorrhage amid macroeconomic uncertainty

The post-election hype has died down following the mixed reactions from investors to the White House Crypto Summit on March 7, as the realities of macroeconomic uncertainty and the political process set in.

Despite lower-than-expected CPI inflation figures reported on March 12, the price of Bitcoin declined immediately following the news.

Crypto exchange-traded funds (ETFs) experienced four consecutive weeks of outflows beginning in February and the early weeks of March as traditional financial investors sought a flight to safety.

According to CoinShares, outflows from crypto ETFs totaled $4.75 billion over the past four weeks, with BTC investment vehicles recording $756 million in month-to-date outflows.

Poor market sentiment and fears of a looming recession triggered a wave of panic selling that sent crypto prices tumbling.

Since the Trump inauguration on Jan. 20, the Total3 Market Cap, a measure of the total crypto market capitalization excluding Ether (ETH) and BTC, plummeted by over 27% from over $1.1 trillion to approximately $795 billion.

Bitcoin price action and analysis. Source: TradingView

Similarly, the price of Bitcoin declined by over 22% from a high of over $109,000 to present levels.

Bitcoin has been trading below its 200-day exponential moving average (EMA) since March 9, with occasional dips below the 200-day EMA during February.

Bitcoin’s Average True Range (ATR), a measure of volatility, is currently over 5,035 — indicating significant price swings as markets grapple with macro factors.

Crypto analyst Matthew Hyland recently argued that Bitcoin must secure a close of at least $89,000 on the weekly timeframe or risk a further correction to $69,000.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.