The Bitcoin price has faced substantial bearish pressure recently, with a crypto researcher attributing the market correction to declining demand.

In a recent analysis posted on the X platform, Julio Moreno, CryptoQuant’s head of research, discussed how the recent downturn in Bitcoin's price correlates with reduced apparent demand. This metric, derived from CryptoQuant's platform, assesses demand by analyzing inactive supply — Bitcoin that has not been moved or transferred over a specified period.

Moreno highlighted that the chart uses the 1-year inactive supply as an indicator of inventory, indicating the amount of BTC that has remained inactive for over a year. According to CryptoQuant data, approximately 23,000 BTC have exited the 1-year inactive supply over the past month, signaling a decrease in demand as long-term investors appear to be liquidating their holdings.

This decline in demand has implications for Bitcoin's market dynamics. Moreno pointed out that reduced demand has contributed to the recent price correction, as increased supply from long-term holders entering the market can drive prices lower. Insufficient buying pressure to absorb this additional supply can further exacerbate price declines.

CryptoQuant's weekly report also highlighted a significant decline in Bitcoin demand compared to Q1, coinciding with the launch of US spot exchange-traded funds. The current price dip suggests that a resurgence in BTC demand could potentially reignite the ongoing bull market.

As of the latest data, Bitcoin is trading around $60,790, marking a 1.6% decrease over the past week and nearly 6% decline overall, according to CoinGecko.