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Market Demand Imbalance
Bitcoin demand is contracting despite near-record institutional accumulation.
“Bitcoin demand is weakening, citing common signals across five data sets”
Large holders and retail investors sold roughly 157,000 BTC while institutions bought 94,000 BTC.
Whales shifted from buyers to sellers and distributed approximately 188,000 BTC over the past year.
Bitcoin traded around $67,000–$68,000, roughly 21% above the weighted average cost.
Market Segments Diverge
Institutions continued to buy at near-record pace, absorbing about 94,000 BTC in March.
Retail, whales, miners, and funds sold approximately 157,000 BTC.
The Coinbase Premium turned negative again, indicating US-based demand weakened.
The Fear & Greed Index hovered in extreme fear at 8 to 14.
Market Maturity and Outlook
Bitcoin has declined roughly 47% from its October 2025 all-time high.
“Bitcoin’s supply in profit has dropped to 56.9%, while 43% of total supply is underwater”
Supply in profit dropped to 56.9% while 43% of total supply was underwater.
Bitfinex reported that the supply of newly created BTC is vastly outstripped by buyers' demand.
Morgan Stanley’s upcoming low-fee IBIT could provide additional institutional firepower.