Bitcoin Demand Weakens Despite Institutional Buying
- In March, institutions purchased approximately 94,000 BTC, while net demand was negative by about 63,000 BTC.
- Large holders (wallets with 1,000 to 10,000 BTC) shifted from adding to selling nearly 188,000 BTC over the past year.
- Bitcoin’s current price is around $67,000-$68,000, which is only a 21% premium above its realized price of $54,286.
- The Fear and Greed Index remains low at between eight and fourteen, indicating extreme fear in the market.
- Morgan Stanley has received approval for a bitcoin ETF charging only fourteen basis points, potentially increasing institutional access.
Despite strong institutional purchases of Bitcoin, retail and other market participants have sold significantly more than institutions can absorb. The combination of extreme fear and ongoing institutional buying suggests a disconnect in market sentiment.
With institutions absorbing around 94,000 BTC while the broader market sold approximately 157,000 BTC, the demand structure appears to be weakening from within.(Source)
