"Bitcoin flashing signs of weakening demand"…five reasons

Analysis suggests demand for Bitcoin (BTC) is weakening. A common signal was found across five data sets, including on-chain metrics, supply-demand indicators and sentiment gauges.

On the 4th (Korea time), cryptocurrency news outlet CoinDesk reported that a number of recent indicators show Bitcoin demand is weakening. The outlet pointed to five signals in total.

First is the overall supply-demand indicator. Over the past 30 days, Bitcoin saw net selling of 63,000 coins. Over the same period, exchange-traded funds (ETFs) and major institutional investors bought about 94,000 coins, while retail investors, whales and miners sold roughly 157,000 coins.

Next is a position shift by large investors. Wallet addresses holding 1,000 to 10,000 bitcoins have recently moved into capitulation selling. Over roughly 18 months, these large investors offloaded 400,000 bitcoins.

Third is the slowdown in buying by mid-sized investors. Wallets holding 100 to 1,000 bitcoins remain net buyers, but the pace of the increase in their purchases has fallen by more than 60% from October 2025.

The absence of a bottoming signal in the price structure was also cited as a factor that could dampen demand for Bitcoin investment. Bitcoin is currently trading about 21% above the average realized price.

Lastly, the slow recovery in investor sentiment was also flagged. The Fear & Greed Index has remained in “extreme fear” continuously from March 19 through now.

"These combined signals show that while the Bitcoin market is holding up on the surface, it is increasingly facing weakening demand internally," the outlet said, adding that "the market now hinges on how much of the remaining sell supply institutional buying can absorb."