Bitcoin Net Demand

Definition ∞ Bitcoin net demand measures the overall buying interest for Bitcoin compared to selling interest over a period. This metric quantifies the aggregate difference between Bitcoin acquisition and disposition activities across various market participants, including retail and institutional entities. It provides insight into whether more Bitcoin is being accumulated or distributed, serving as a key indicator of market sentiment and potential price direction. Positive net demand suggests accumulation, while negative net demand indicates selling pressure.
Context ∞ Bitcoin net demand is a closely watched on-chain and off-chain metric for market analysts seeking to understand underlying supply and demand dynamics. Its movements are frequently reported in crypto news to explain price fluctuations and anticipate future market trends. A sustained increase in net demand often precedes upward price movements, reflecting growing conviction among holders and new entrants.