According to data shared by CryptoQuant writer Axel Adler to Adler added that a previous similar drop in January fell to “18%” and Bitcoin rose from $40,000 to $70,000 - this followed the approval of spot Bitcoin exchange-traded funds (ETFs) in the US, pushing Bitcoin to $70,000 in March. It rose to an all-time high of $73,679 in mid-2019.

“I also noticed that this group reacts quickly to any market changes,” Adler said.

In May, Adler used the same metric to show that demand fell 31% in the 17 days before May 24, falling to a negative 14.50%. He pointed to increased interest in GameStop and Ether, likely due to the approval of the first spot Ether ETFs.

Analysts have previously suggested that the change in Bitcoin demand is due to several factors, including the US Consumer Price Index (CPI), which tracks inflation.

When the CPI falls, assets perceived as risky, such as Bitcoin, may become more attractive to investors as traditional savings and term deposits offer less lucrative returns as interest rates fall.

For Bitcoin to hit new all-time highs, the CPI would need to fall to 3.3% on June 12 — when the U.S. Bureau of Labor Statistics released the data — 10x Research principal researcher Markus Thielen told Cointelegraph in May. told.

Bitcoin fell below its November 2021 all-time high of $69,000 on June 11 – a level closely watched by investors. At the time of publication, Bitcoin is trading at $67,350, down 3.19% over the past 24 hours, according to CoinMarketCap. The sudden drop wiped out a $52.87 million Bitcoin long position last day. Open Interest remained above the closely watched $35 billion mark, according to CoinGlass data.

Although investors hoped that Bitcoin would quickly rise above $70,000 after falling below $70,000 on June 8, it has yet to achieve this.

Despite CPI results expected to be released on June 12, futures traders do not seem to foresee Bitcoin recovering in the near term, with $2.14 billion of short positions at stake if it recovers.