Because to the majority of BTC users in the cryptosphere the thought of
hodling their coins and expect bigger gains in the long-term outweighs the need of wanting to spend their coins. It wasn't the case back in the day when coins were dirt cheap, just look at those guys spending btc to buy pizzas and whatnot. Nowadays only a small fraction of btc users spend their coins.
I know for a fact, there is a huge demand for purchasing of goods with BTC
No, there isn't. If that were true then that marketplace would've gone live years ago.