Bitcoin’s on-chain demand weakened again on Wednesday as the cryptocurrency fell below $77,000 amid a broader sell-off in global bonds and equities.
Bitcoin (BTC) dropped to a local low of $76,400 during early European trading hours before recovering above the $77,000 level, according to CoinGecko data.
Data from CryptoQuant shows Bitcoin’s apparent demand indicator has turned negative again after briefly recovering during the August rally.
The indicator compares newly mined Bitcoin issuance with changes in inactive supply and is used to assess active spot-market demand. A positive reading suggests the market is absorbing newly issued and previously inactive coins, while a negative reading indicates that coins are moving into dormancy faster than new supply is being absorbed.
Bitcoin’s latest decline also followed $236 million in net outflows from US spot Bitcoin ETFs on Tuesday, adding further pressure to the market.
Although BTC reclaimed $77,000, the cryptocurrency remains below several resistance levels that could limit its near-term recovery.
Bitcoin’s weakness came as global financial markets faced renewed selling pressure. The US 10-year Treasury yield briefly slipped below 4.8%, while sharp movements in the USD/JPY pair fueled speculation about another intervention by Japanese authorities.
USD/JPY fell to around 158.5 after approaching the 160 level, which is widely viewed as a level the Bank of Japan may seek to defend. No official confirmation of an intervention had been issued at the time of reporting.
Asian stock markets also recorded steep losses. South Korea’s KOSPI dropped 4% to 6,562.72, while Japan’s Nikkei 225 declined 2.9% to 64,325.64. Taiwan’s TAIEX fell 1.7%.
The sell-off was attributed partly to higher oil prices and profit-taking in the artificial intelligence sector, adding to broader risk-off sentiment across global markets.
With Bitcoin’s apparent demand turning negative and traditional markets under pressure, traders are closely watching whether BTC can hold above $77,000 and regain momentum.
