Data from the analytics platform CryptoQuant shows that despite an increase in institutional buying, demand for Bitcoin remains under pressure, indicating that the broader market is still selling off the token.
A report released by CryptoQuant on Wednesday showed that as of the end of last month, the apparent demand (a measure of whether the demand for Bitcoin exceeds or falls short of the number of newly mined Bitcoins) was negative, at around 63,000. Despite strong buying from exchange-traded funds (ETFs) and continued accumulation of Bitcoin by Michael Saylor’s digital asset management firm, MicroStrategy Inc., the apparent demand remained negative.
The report states: “The sales volume of retailers and other market participants is sufficient to offset the new purchases made by institutions. The continuous decline in demand since late November 2025 confirms that the entire market remains in the distribution phase.”
Data shows that new demand in the market is being offset by existing holders reducing their positions – even as institutional investor interest seems to be picking up, this dynamic could limit gains.
Bitcoin ended its five-month-long downtrend in March, rising by 2.2%, despite the Iran war pushing up energy prices, heightening inflation concerns and dragging down other risky assets. However, the current price of Bitcoin is around $68,000, having dropped by approximately 45% from the peak of $126,000 it reached in early October.
CryptoQuant said that large Bitcoin holders, known as “whales”, which were once a stable source of Bitcoin accumulation, have turned into net sellers and have sold a large amount of Bitcoin in the past year.
The report points out: “After accumulating approximately 200,000 bitcoins during the bull market in 2024, the whales began to actively sell off from mid-2025 and accelerated their selling in the fourth quarter of 2025. Historical data shows that the continuous negative hoarding by whales often coincides with periods of long-term price weakness, and the current selling trend indicates that selling remains a significant structural resistance.”
Meanwhile, medium-sized investors, who had been increasing their holdings, are now slowing down their pace of purchase, which further weakens a layer of support.
In recent weeks, demand for Bitcoin in the United States has also weakened. The Coinbase Premium, an indicator measuring the price difference between US exchanges and overseas exchanges, has once again turned negative, suggesting that US investors are no longer competing to drive up the price of Bitcoin.
CryptoQuant said, however, that if the macroeconomic situation improves, especially if the conflict between the US and Iran eases, the price of Bitcoin could rebound in the short term.
The report states: “The easing of geopolitical tensions could serve as a positive catalyst in the short term and potentially trigger a wave of rebound.”
