Bitcoin Demand Turns Negative as Retail Investors Sell Amid Price Rallies

The demand for Bitcoin has turned negative as retail investors sell their holdings during price rallies. This trend is evident from CryptoQuant data, which shows that existing supply from dormant wallets is overwhelming new buying interest.

This isn't a short-term blip: the demand metric was negative for 208 consecutive days through June 26, with lows plunging to approximately -273,000 BTC.

Retail investors are selling their holdings instead of accumulating more, according to data on wallets holding under 10 BTC. This behavior is reflected in a negative accumulation trend score of -0.982 since early August 2026, where -1 represents maximum distribution.

Institutions aren't picking up the slack: the Coinbase Premium Index, which compares Coinbase prices to other exchanges, remained negative for 78 consecutive days. US spot Bitcoin ETFs have also contributed to the problem with significant capital outflows.