According to a report by CryptoQuant community author CW8900 on September 7, Bitcoin's spot demand has continued to decline, with the negative value expanding further, while futures demand saw a slight drop. The current market rally is primarily driven by futures demand, which is not a positive signal as sustained upward movement requires spot demand. Despite the price rebound, spot BTC outflows have increased, threatening the rally if the trend persists. On-chain data reveals that large holders are accumulating, while retail investors are steadily selling, even during price increases. CW8900 suggests retail investors may have adapted to the previous downtrend and are inclined to take profits or reduce positions during bounces. The negative spot demand is mainly attributed to ongoing retail selling, whereas large investors continue to buy.
On September 7, CryptoQuant community author CW8900 published an analysis saying Bitcoin's spot demand has slipped further into negative territory, while futures demand has edged down as well. Right now, the market rally is being driven mostly by futures demand. That is not a healthy sign, because lasting price climbs usually need backup from spot demand. BTC prices have bounced, yes, but spot outflows have increased. And if that keeps up, the current rally may start to crack. So the key question is simple: what is causing the negative spot demand?
Looking at position structure, large holders are adding to their positions, while retail holdings are shrinking. CW8900 said retail investors are still selling even as prices rise, likely because they have adjusted to the earlier bearish market and now prefer to lock in profits or cut exposure during rebounds. In short, the current negative spot demand is being driven mainly by steady retail selling, while large investors are still buying.
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