Bitcoin has lost about $3,500 in value in recent days, falling from above $70,000 earlier in March to around $66,500. short-term holders take their exit. On a particularly turbulent day, there were approximately 22,000 BTC moved to exchanges in a single session. Yet, Bitcoin price is still above support and has not fallen below $60,000.
Another dynamic is quietly taking shape, one that raises a more important question than the sell-off itself: Who is actually absorbing all the Bitcoin that is sold?
Demand for ETFs is quietly absorbing market supply
Short-term holders, those who acquired Bitcoin relatively recently and are most sensitive to price drops, have been rushing coins onto exchanges at a rapid pace. However, on-chain data from CryptoQuant data reveals a counterforce of equal or greater magnitude.
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The latest data points to Bitcoin moving into institutional hands, especially through spot ETFs. Over the past 30 days, institutions have collected approximately 63,000 BTC. This figure contrasts with the daily selling pressure from short-term holders.
As the ETF flowchart below shows, that was the case first posted on On the social media platform This has given rise to a pattern of big buyers stepping in to buy BTC during dips and after they slow down, effectively sucking up available liquidity.
Bitcoin ETF tracker. Source: @CryptoTice_ On X
Are sellers running out of Bitcoin to sell?
March had its ups and downs in terms of price action, with Bitcoin briefly regaining levels above $76,000 before you come under pressure again as sales increased towards the end of the month.
As it stands now, the Bitcoin price is will probably close in March under $70,000, and it’s even gone risk of ending the month in the red, which would bring the price to six consecutive months of bearish close. At the time of writing, Bitcoin is trading at $67,339, which puts it just 0.57% above the March opening price of $66,970.
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On the other hand, the US-based Spot Bitcoin ETFs are currently on $1.2 billion in net inflows by March 2026, ending four consecutive months of net outflows. This turnaround shows that institutional appetite is starting to return after a prolonged period of reduced exposure, with capital gradually flowing back into Bitcoin.
Although this influx haven’t been strong enough to fully compensate for the short term selling pressure on the Bitcoin price, they do point to the willingness of larger players to accumulate at the current price range. By definition, short-term holders have a finite supply of coins acquired at recent prices. If the current rate of absorption continues, the supply available to sellers will continue to decline while demand is still strong.
Featured image created with Dall.E, chart from Tradingview.com