Bitcoin seeing ‘strong demand’ as crypto market eyes ‘recovery phase’

Analysis of previous bitcoin bull market corrections shows past year’s drawdown was much weaker than prior cycles — an indication of strong demand

article-image

Artomat/Shutterstock, modified by Blockworks

share

Trade activity for the world’s largest digital asset this year has, so far, remained fairly neutral to wider macroeconomic developments as market demand for bitcoin continues to prop up its price.

Assuming the November 2022 lows represent the bottom of the previous cycle, it’s possible to analyze the extent of the “bull market corrections” up to this point, Glassnode said Monday.

The steepest decline recorded for bitcoin (BTC) this year represents a mere -18%, which is low when compared to past cycles of bygone eras.

Data shows that, on average, bitcoin’s prior peak-to-troughs stood at roughly 48%, suggesting a “relatively strong degree of demand” for bitcoin currently exists, Glassnode said.

Bitcoin’s bull market correction drawdown history; Source: Glassnode

To further that point, the number of unique addresses holding 1 BTC surpassed the 1 million threshold for the first time on May 17 of this year — an indication of greater adoption.

Bitcoin’s hash rate, also another measure of adoption based on the network’s increase in security, rose to fresh heights on July 9, above 402 ExaHash per second (EH/s), data shows.

Mathias Beke, co-founder and CTO at market maker Kairon Labs, told Blockworks current sentiment and price action marked a “typical recovery phase.”

When asked if traders were looking to sell following excess market froth following Blackrock’s spot bitcoin ETF application, Beke said they were wary of potential declines and as such are not making significant moves in either direction.

“We think it’s a mix of big tech being fairly parabolic, but it looks like they might cool down a bit,” he said.

Still, uncertainty surrounding the US market and its approach to digital asset regulation has given traders pause, particularly as the asset’s four-year halving event swiftly approaches.

“At the moment there’s a lot up in the air around Binance, as well as the liquidations that could take place from FTX and Celsius,” Beke said.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

The convergence of DePIN and energy generation aims to address modern grid challenges by incentivizing distributed generation.

article-image

US states are now competing for Bitcoin bragging rights

article-image

The deal is likely to fuel further M&A around derivatives trading and infrastructure, Architect Partners’ Michael Klena says

article-image

Stripe announced Stablecoin Financial Accounts, which will allow businesses to have “stablecoin-powered accounts”

article-image

The deal is made up of $700 million in cash and 11 million shares of Coinbase’s Class A common stock

article-image

Blockworks Research uses numbers to help crypto advance to a higher stage of storytelling