Recent analysis from CryptoQuant indicates that while Bitcoin is experiencing some stabilization in its momentum, a significant rebound in demand has not yet been observed.
The decline in Bitcoin’s spot demand appears to have eased, yet the overall demand metrics remain weak. Broader market indicators reflect persistent uncertainty among investors, leading to continued caution in the market.
Data from the past month highlights that apparent demand for Bitcoin has decreased by 146,000 BTC, a notable improvement compared to the more pronounced drop of 311,000 BTC recorded on March 27. However, there are troubling signs for demand momentum, which measures new investor buying against holdings by long-term investors. This metric has worsened further, falling by 642,000 BTC—the lowest it has been since October 2024.
Market analysts caution that for Bitcoin to initiate a sustainable price rally, there needs to be a stabilization in both demand and momentum, as well as a return to positive growth trajectories.
ETF Inflows Stagnate Amid Waning Institutional Participation
Participation from institutions via U.S.-based spot Bitcoin ETFs appears to have stalled, suggesting a cooling interest in the marketplace. Since late March, net purchases by these ETFs have remained between -5,000 and +3,000 BTC per day, significantly lower than the more than 8,000 BTC inflows witnessed during the bullish market conditions of November to December 2024.
Further analysis reveals a stark contrast in ETF activity year-on-year. In 2025, U.S. Bitcoin ETFs have recorded a net sale of 10,000 BTC, while in the same timeframe of 2024, they had accumulated a net total of 208,000 BTC.
Market experts argue that increased participation in ETFs is crucial for reviving upward price momentum, which currently lacks the necessary support.
Additionally, large-scale Bitcoin holders have started to lessen their positions, with their total holdings dropping by approximately 30,000 BTC over the last week. Furthermore, their rate of monthly accumulation has sharply declined from 2.7% in late March to a meager 0.4%, marking the slowest growth since February 20.
Liquidity Growth Fails to Match Market Demand
Although there has been a modest uptick in crypto market liquidity, it remains below expected levels. The USDT market cap, often taken as a barometer for crypto liquidity, has increased by $2.9 billion over the last two months.
However, this growth does not meet the $5 billion threshold typically associated with robust Bitcoin rallies and continues to fall short of the 30-day moving average, indicating persistent liquidity constraints.
On the price front, Bitcoin is contending with technical resistance within the $91,000–$92,000 range, aligning with the on-chain realized price level for traders. This price point can function as either a support or resistance level, depending on market sentiment. Currently, the overarching bearish conditions suggest it is acting as a cap on further price increases.
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