Bitcoin spot demand turns negative amid retail sell-off

According to ME News, on September 7 (UTC+8), CryptoQuant community author CW8900 posted that negative spot demand for BTC is further widening, while futures demand has also seen a slight decline. The current market rally is primarily driven by futures demand, while spot demand continues to show negative growth—a concerning sign, as a lack of spot demand makes it difficult to sustain an upward trend. Despite the rebound in BTC’s price, the volume of BTC flowing out of spot markets has further increased. If this trend continues, the current upward momentum could be undermined. Therefore, it is crucial to determine the specific causes behind the shift to negative spot demand. Looking at the holding structure, large holders’ positions continue to rise, while retail holders’ positions keep declining. CW8900 believes that retail investors are continuing to sell even during BTC price rallies, possibly having adapted to previous downturns and tending to take profits or reduce positions during rebounds. The current negative spot demand is primarily driven by sustained retail selling, but notably, large investors continue to buy. (Source: BlockBeats)