Bitcoin Rally Loses Momentum as ETF, Strategy Net Buying Slows to $870 Million

Bitcoin's key demand drivers are losing strength, raising the prospect that the cryptocurrency could remain range-bound for now. Slower buying from spot Bitcoin exchange-traded funds and Strategy has weakened a major pillar of the rally.

BIT, formerly Matrixport, wrote in a post on X on May 26 that combined net purchases by spot Bitcoin ETFs and Strategy totaled $870 million over the past 30 days. That is far below the large inflows seen during last year's bull run.

Institutional demand has long been viewed as the core driver of Bitcoin's rally in the digital-asset market. In particular, inflows into spot ETFs and Strategy's Bitcoin purchases helped support prices by absorbing available supply.

A chart shared by BIT showed combined net buying by spot ETFs and Strategy swelling to $23.72 billion late last year before losing momentum. The total later showed some signs of recovery, but has fallen sharply in recent periods as ETF outflows expanded.

Markus Thielen, an analyst, said Bitcoin's sustained gains had relied on strong institutional demand outpacing limited supply. He added that prices climbed as ETF inflows accelerated and Strategy aggressively accumulated Bitcoin.

That pattern has weakened recently. ETF outflows have emerged, and in some periods the funds became net sellers. Even after including Strategy's purchases, the overall demand effect has faded from earlier levels. Bitcoin was trading at $77,271 on the chart, marking a pullback from its previous high.

Market attention is now focused on whether demand recovers. If ETF inflows stabilize and Strategy steps up purchases again, the chances of a renewed uptrend could increase. If inflows fail to recover, Bitcoin is more likely to remain in a sideways range than stage a near-term breakout.