Bitcoin Institutional Demand Cools, Potentially Threatening $100K Support

• Weekly ETF inflows have dropped 90% for major funds like BlackRock’s, from peaks above 10K BTC to just 600 BTC recently.

• Bitcoin treasury companies, including those led by prominent executives, have reduced aggressive buying compared to earlier periods.

• On-chain metrics from providers like Glassnode and CryptoQuant show insufficient demand to counter current selling pressure, with negative apparent demand aligning with past local bottoms.

Bitcoin ETF inflows decline signals cooling institutional demand in 2025, impacting BTC price stability. Explore on-chain insights and expert views to understand market trends—stay informed today.

What is causing the decline in Bitcoin institutional demand?

Bitcoin institutional demand is declining primarily due to reduced inflows into spot BTC exchange-traded funds (ETFs), as evidenced by data from on-chain analytics firms. BlackRock’s ETF, a key indicator of institutional interest, has seen weekly inflows fall sharply to around 600 BTC over the past three weeks, down from over 10,000 BTC during previous market rallies. This 90% drop reflects broader caution among investors amid market consolidation.

How are ETF inflows impacting Bitcoin’s price recovery?

The sharp reduction in Bitcoin ETF inflows is directly weighing on BTC’s price, preventing a sustained rebound above key levels like $100,000. According to Glassnode data, this decline coincides with increased selling from long-term holders and early investors, creating excess supply that current demand struggles to absorb. Expert analysis from CryptoQuant’s Head of Research, Julio Moreno, highlights that without renewed institutional buying, prices may continue to face downward pressure, potentially testing lower supports.

“Is there enough demand to absorb the supply at higher prices? Since a few weeks ago, the answer is no, and that is why we see prices declining,” Moreno stated in a recent analysis. Supporting statistics show that ETF net inflows across major funds have averaged below 1,000 BTC weekly, a stark contrast to the aggressive accumulation phases earlier in the cycle.

Source: Glassnode

Bitcoin treasury firms, such as MicroStrategy under Michael Saylor’s leadership, have also scaled back their bidding strategies, contributing to the overall slowdown. This shift indicates a maturing market where institutions are adopting a more measured approach rather than the frenzied accumulation seen in prior upswings.

Beyond the LTH sell pressure

While some market observers attribute Bitcoin’s current challenges to selling by long-term holders (LTHs) and early adopters, a balanced view suggests the asset is entering a consolidation phase typical of post-rally periods. On-chain indicators point to a cautious mid-term outlook, but long-term demand growth remains intact, albeit at a moderated pace. Data from CryptoQuant reinforces that current supply pressures exceed absorption capacity at prevailing prices.

Source: CryptoQuant

In the longer term, Moreno observes that demand is still expanding, which could support future upside. Notably, instances of negative apparent demand in 2024 and 2025 have historically marked local price bottoms for BTC, raising questions about potential repetition. Singapore-based QCP Capital, in its market update, described the odds of a deeper downturn as evenly split, stating: “As BTC continues to consolidate in a multi-month band reminiscent of pre-breakout 2024, speculation has emerged on whether this cycle is nearing its end. Whether this marks the onset of another crypto winter is unclear.”

Key cycle indicators like the MVRV Z-Score provide further context, currently not showing overheating levels that would signal a cycle top. Past readings above 3 have indicated local peaks, but the metric’s current position suggests room for movement before any major shift. As BTC trades around $104,000 following recent corrections, these factors underscore the need for vigilant monitoring of institutional flows.

Source: Glassnode

Frequently Asked Questions

What are the latest figures for Bitcoin ETF inflows?

Recent data from analytics providers indicates that BlackRock’s spot BTC ETF has recorded weekly inflows of approximately 600 BTC over the last three weeks, a significant decrease from earlier highs exceeding 10,000 BTC, reflecting tempered institutional enthusiasm.

Can Bitcoin maintain its price above $100,000 amid declining demand?

If institutional demand picks up to previous levels, Bitcoin could hold and potentially surpass $100,000; however, sustained low inflows risk breaching this support, as current on-chain metrics show supply outweighing buying pressure in natural market dialogue.

Key Takeaways

• Institutional BTC demand has declined sharply: Weekly ETF inflows dropped from over 10K BTC to below 1K BTC, primarily affecting funds like BlackRock’s.
• On-chain signals indicate caution: Negative apparent demand aligns with historical local bottoms, though long-term growth persists at a slower rate per CryptoQuant analysis.
• Market consolidation likely ahead: Indicators like MVRV Z-Score suggest no immediate cycle top, advising investors to monitor for renewed inflows before positioning for upside.

Conclusion

The decline in Bitcoin ETF inflows and broader institutional demand highlights a transitional phase for BTC in 2025, with on-chain data from Glassnode and CryptoQuant underscoring supply-demand imbalances. As the market matures, renewed interest from treasury firms and ETFs could drive recovery. Investors should track these metrics closely for opportunities in the evolving crypto landscape.