Editor's PiCK
[Analysis] "Despite continued institutional purchases... Bitcoin price stagnant as demand weakens"
Summary
- Despite the ongoing acquisition of Bitcoin spot ETFs and major corporations, it was reported that a sharp decline in overall demand is restricting any price rebound.
- Over the past month, as the Bitcoin purchase volume of ETFs and corporations decreased, the estimated overall Bitcoin demand dropped by 895,000 BTC, offsetting the effects of institutional inflows.
- It is projected that unless there is a broad-based demand recovery, the price of Bitcoin could remain range-bound for the time being.
Despite ongoing purchases of Bitcoin (BTC) spot Exchange-Traded Funds (ETFs) and acquisitions by several large companies, analysis indicates that a general decline in market demand is limiting a price rebound.
According to Coindoo, a cryptocurrency-focused media outlet, the on-chain analytics firm CryptoQuant recently reported, "Institutional buying continues, but overall demand is sharply decreasing." The report states that ETF inflows over the past month totaled about 40,000 BTC—about half of the 86,000 BTC recorded in December last year.
At the corporate level as well, the scale of purchases has slightly decreased. Strategy (formerly MicroStrategy)'s Bitcoin acquisition dropped from 171,000 BTC to 16,000 BTC during the same period.
CryptoQuant pointed out, "The core issue for (stagnant prices) is not buying by ETFs or companies, but rather the sharp decline in total market demand." In fact, estimated overall Bitcoin demand has decreased by about 895,000 BTC over the past month—enough, the report explains, to more than offset the effect of institutional inflows.
The situation is similar on an annual basis. Although ETFs and Strategy accumulated about 748,000 BTC in the past year, total demand fell by an even greater 857,000 BTC.
The media outlet commented, "Institutional inflows do provide some support, but alone are not enough to drive a bull market," adding, "Without widespread demand recovery, the Bitcoin price could remain range-bound for now."
As of 3:48 PM on Binance USDT market, the price of Bitcoin was trading at $108,947, down 0.48% from the previous day.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
![Trump ally Myron, a Fed governor, resigns White House post…pushing for rate cuts until Warsh arrives? [Fed Watch]](https://media.bloomingbit.io/PROD/news/75fa6df8-a2d5-495e-aa9d-0a367358164c.webp?w=250)
