Bitcoin continues to hover around $109,451, but there are signs of dwindling demand from institutional investors. While support from firms like Strategy remains, the overall market situation raises concerns.
Institutional Support Can't Offset Shrinking Spot Demand
Despite noticeable institutional activity, including ongoing purchases by Michael Saylor’s Strategy and inflows into Bitcoin ETFs, a report from CryptoQuant shows a clear disconnect between institutional buying and overall market demand.
"ETFs and MSTR purchases are a portion of bitcoin demand, but overall demand contraction is more than offsetting these purchases," CryptoQuant noted. "The acceleration of overall demand growth drives price rallies."
Data shows that in the last 30 days alone, demand for BTC has contracted by approximately 895,000 coins. This decline dwarfs the combined impact of institutional purchases, which have slowed compared to the December highs.
Treasury Strategy Losing Its Shine?
The Bitcoin treasury strategy, once trending among companies emulating Strategy’s approach, is now undergoing scrutiny. Speaking to Bloomberg, SkyBridge Capital founder Anthony Scaramucci warned that the replicative BTC-on-the-balance-sheet model is likely to fade.
"Right now we’re having this replicative treasury company idea," said Scaramucci. "So, you know, it will fade."
Despite this, Standard Chartered remains one of the few bullish voices in the market, continuing to project a $200,000 BTC price target.
Looking Ahead: A Breakout or Breakdown?
At present, Bitcoin is locked in a prolonged consolidation with no immediate catalyst in sight. If institutional purchases continue to slow, and retail demand remains largely absent, Bitcoin may struggle to maintain its current price level.
However, the upcoming Bitcoin halving in less than a year and increased watchfulness of global capital markets toward crypto might signal new developments for BTC.
Elon Musk's launch of the America Party could potentially impact the political acceptance of cryptocurrencies. Bitcoin is shaping up to be more than just a financial asset; it is becoming a political symbol.
