After experiencing a downfall in mid-March now the <a href="https://www.cryptoknowmics.com/news/bitcoin-value-to-reach-100000-per-unit-binance-ceo/">value of Bitcoin</a> has started rising. From $3800 the value has currently reached $7037, which means the Bitcoin has increased to 87 percent. Along with Bitcoin, many other digital assets are also showing such impressive growth in the market, recently.

But the <a href="https://twitter.com/ArcaneResearch/status/1251114696331182081?s=20" target="_blank" rel="noopener">weekly repor</a>t of Arcane Research showcases different data for Bitcoin. The report states that while going through the Bytetree data, it found out that currently, the on-chain demand of Bitcoin is going down.
<h2>On-Chain Demand Rank Of Bitcoin</h2>
The Bytetree measures the increasing demand by giving them a rating of 4,5 or 6. In March 2020, Bitcoin’s demand rating was 4 but as the financial industry came down, it affected Bitcoin too and rating decreases to 3.

The assumption is being made that the reduction in the on-chain demand of Bitcoin could be the reason BTC is not able to go beyond $7000 from the past few weeks.

After observing the 4-hour chart it has been found that since April 01, 2020, Bitcoin tested the $7000 range for 4 times but it is not able to cross that mark. Although its current value is above $7037, it is not moving above that range.
<h2>Bitcoin In Extreme Fear</h2>
A report stated that Greed Index and Fear of Bitcoin could be considered another reason for boring on-chain demand.

Bitcoin remained in ‘extreme fear’ for 5 weeks, which is the longest period, currently. In the year 2018, from November to December it remained in extreme fear and at that time the market was fighting with a bearish period.

According to a report, although the market value and sentiments regarding Bitcoin keep increasing, still the investors remain cautious.

The report added that on one hand, new users were entering into the Bitcoin space and on the other hand, most of the previous investors did not trust Bitcoin for long-term investment.

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Bitcoin Value Goes Above $7000, Has Weak On-Chain Demand

After experiencing a downfall in mid-March now the value of Bitcoin has started rising, currently the value has reached $7037 but on-chain demand falls.

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.

Bitcoin Value Goes Above $7000, Has Weak On-Chain Demand

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