Why BTC is Stuck in a Rut Despite Institutions Going Nuts 🤷‍♂️

by

Over the last thirty days, many institutions have been loading up their bitcoin (BTC) bags with the enthusiasm of a schoolboy on a chocolate binge. However, these purchases have had about as much impact on the price of the leading digital asset as a whisper in a hurricane. This has sparked concerns among market participants, who are now scratching their heads and wondering what on earth is going on.

Many are wondering why BTC has been stuck within a tight range since it hit an all-time high (ATH) in late May, like a hamster on a treadmill that’s run out of steam.

A recent report by the market intelligence firm CryptoQuant, which one might describe as the Sherlock Holmes of the crypto world, has revealed the reason for the weak price momentum despite persistent institutional demand, which analysts say is currently not enough to make a dent in the market’s collective apathy.

BTC Stalls Despite Institutional Demand

According to CryptoQuant, BTC purchases from U.S.-based exchange-traded funds (ETFs) and corporate treasuries belonging to firms like Strategy have declined this year compared to the period from November to December 2024, like a deflating balloon at a children’s party.

ETF purchases have decreased from 86,000 BTC in early December to 71,000 BTC in mid-May, and are currently at 40,000 BTC. The trend represents a 53% decline over this period, which is about as cheerful as a rainy day in London.

At the same time, Strategy’s acquisitions have also dropped from 171,000 BTC in December to 16,000 BTC currently. This shows a 90% plunge over the period, which is enough to make one feel like they’ve just been hit by a tidal wave of bad news.

Although institutional purchases and ETF flows have kept BTC above $100,000 for a while, further declines could slow price gains. This could be exacerbated by the fact that ETF and institutional buys represent a fraction of the overall BTC demand, which seems to be contracting like a concertina in a fire.

At the market’s peak in December, ETF and institutional purchases represented 33% of total Bitcoin demand growth. These entities purchased no more than 257,000 BTC out of the total 771,000 BTC. This indicated that the Bitcoin market had a bigger and unobservable demand coming from other sources, like a secret admirer leaving chocolates on your doorstep.

Overall Demand is Contracting

Currently, the overall demand for BTC is contracting, having declined by 895,000 BTC over the last 30 days. This metric needs to expand for a sustainable price rally to occur, but the demand level from institutions right now is not enough to trigger that expansion, much like a firecracker in a damp fuse.

CryptoQuant stated that Bitcoin’s annual growth chart reflects how ETF and institutional purchases account for only a portion of demand. Apparent demand has also contracted by 857,000 BTC, significantly offsetting the expansion of ETF and institutional demand (377,000 BTC and 371,000 BTC, respectively).

“The bottom line is that ETFs and MSTR’s Bitcoin purchase, while overall positive for Bitcoin price gains, are not sufficient to drive prices to fresh all-time highs,” the market intelligence firm added, with all the cheerfulness of a dentist about to drill a cavity.

Read More

2025-07-07 00:54