Bitcoin (BTC) has surged past the $60,000 mark, reaching the $67,000 zone, driven by news of a lower-than-expected inflation rate in the US. The latest CryptoQuant report suggests this rally is supported by a decline in selling pressure, although demand for the cryptocurrency is yet to increase.

The decrease in BTC selling pressure is evident in the on-chain activity of short-term holders and the balances on over-the-counter (OTC) desks. The BTC balance on OTC desks has been stable since late April, indicating a reduction in bitcoin supply from market participants.

The profit margins of short-term BTC holders are currently at low or negative levels, which historically coincides with a local bottom in prices. This, coupled with miners’ low profitability, suggests the market may have bottomed out.

Bitcoin demand growth appears to be stabilizing following a month of deceleration. The rise in BTC balances of permanent holders and large investors indicates higher demand from these market participants. However, to sustain the latest price rally, BTC demand needs to surge further, potentially from the spot Bitcoin exchange-traded fund (ETF) market and other Bitcoin investment funds.

Stablecoin liquidity growth is also surging, signaling potential movement to the upside for BTC. The crypto market needs a new wave of spot Bitcoin ETF purchases to refresh demand growth, with these products already seeing total inflows of more than $560 million in the last two trading days.