Despite growing interest from institutional investors in Bitcoin, the market faces a sharp decline in overall demand. This raises questions about the future price growth of the cryptocurrency.
Institutional Accumulation Fails to Ignite the Market
The enthusiasm of institutional investors for Bitcoin should have increased its price, but current data suggests otherwise. Companies like MicroStrategy are continuing to build their BTC reserves, yet the Bitcoin price remains stagnant. According to a recent report by Cryptoquant, institutional accumulation represents only a third of the demand seen during the December 2024 peak, with acquisition rates significantly dropping in recent months. Purchase flows from ETFs have halved, while MicroStrategy has experienced a sharp 90% decline.
Demand That Quietly Evaporates
Analysts are increasingly concerned not just about falling institutional purchases, but about the significant contraction of overall Bitcoin demand. In the past 30 days, demand has decreased by 895,000 BTC. This drop, which may be unnoticed by many, eliminates any real upward pressure on Bitcoin prices. This decline is not a temporary phenomenon; over one year, demand has shrunk by 857,000 BTC, far outpacing the combined accumulation of institutions.
Bitcoin: Between Consolidation and Uncertainty
At this point, Bitcoin is neither dramatically dropping nor soaring. This indicates a state of market consolidation, potentially preceding a new cycle. However, for this to happen, demand must recover. The current situation emphasizes that Bitcoin's value is shaped not in boardrooms but among users and traders. Without a resurgence of overall demand, no institutional investment will be able to reignite the market.
Thus, the Bitcoin market finds itself in uncertainty, where institutional purchases only partially offset the decline in overall demand. Without a revival of interest in risk and a desire to own Bitcoin, the market will struggle to reach new peaks.
