Bitcoin Could Drop to $86K as Demand, Network Activity Falter: CryptoQuant

Bitcoin's price, despite recovering from a dip to $93,000, faces potential further decline to $86,000 due to several factors. Demand for Bitcoin has fallen from a peak of 279,000 BTC on December 4th to 70,000 BTC recently. Inflows to Bitcoin exchange-traded funds (ETFs) have turned into outflows over the past two weeks, contrasting with the 18,000 BTC daily purchases seen in November and December. Bitcoin transfers to Coinbase, a measure of U.S. demand, have dropped below their 90-day moving average. Stablecoin growth, which often fuels crypto rallies, has slowed significantly. The 60-day average change in USDT market capitalization, the largest stablecoin, fell from over $20 billion to $1.5 billion since mid-December. Bitcoin network activity has reached its lowest point in a year, down 17% from its November 2024 peak and below its 365-day moving average for the first time since July 2021. After reaching $109,000 in January, Bitcoin has struggled to stay above $90,000. Negative sentiment from controversial memecoin launches has also impacted the market. While a bottom might be near, Bitcoin could fall below $90,000 in the process.