Bitcoin Demand Contracts Amid Institutional Buying

CryptoQuant's analysis shows that despite continued buying from institutional investors, Bitcoin demand remains in a state of deep contraction. The firm notes that the 30-day apparent demand growth figure stood at around negative 63,000 Bitcoin as of late March. This means sellers are removing more Bitcoin from circulation than buyers are absorbing.

According to CryptoQuant, this trend has continued without interruption since late November 2025. Even with increased institutional buying, including ETF purchases of roughly 50,000 Bitcoin over the past 30 days and Strategy's 30-day accumulation of around 44,000 Bitcoin, the pace is still not enough to offset what is happening on the retail side.

The firm attributes the gap between institutional buying and retail selling to large Bitcoin holders, who have shifted into net selling. These 'whales' have accumulated more than 200,000 Bitcoin during 2024 but began reducing positions from mid-2025, with the pace of selling accelerating in late 2025 and early 2026.

CryptoQuant notes that similar whale distribution cycles have historically lined up with extended periods of price weakness. Mid-sized holders are still adding to their positions on a yearly basis, but at a far slower pace. Demand from U.S. investors has also declined in recent weeks, as evidenced by the Coinbase premium staying mostly negative.

Despite the weak demand picture, CryptoQuant says a short-term bounce remains possible, with a reduction in geopolitical tensions potentially acting as a catalyst. The firm identifies the $71,500 level as the first key target for any relief rally and notes that the Trader Realized Price of around $81,200 is the next resistance zone.