Viewpoint: Bitcoin’s rebound is supported by liquidity contraction, with no new demand emerging yet.

CryptoQuant analyst Axel Adler Jr. stated in a post that while Bitcoin has rebounded to $64,600, two on-chain flow metrics have not confirmed an influx of new demand. The Demand/Issuance Ratio is -5.43, and the coin-age net flow stands at -85,500 BTC. Both metrics have recovered from their July lows but remain negative. A Demand/Issuance Ratio below zero means the volume of young coins is shrinking faster than new issuance, a trend that has lasted around five months. A negative coin-age net flow signals that 85,500 BTC have been moved into the long-term holding category (held for over one year) over the past 30 days, pointing to a continued contraction in liquidity supply. The analyst added that the current rebound is primarily supported by liquidity supply contraction (coin aging, long-term holders’ reluctance to sell) and accumulation behavior, rather than new demand. A return of both metrics to above zero is an improvement signal, and a sustained Demand/Issuance Ratio above 1 is needed to confirm a genuine recovery.