Bitcoin [BTC] continued to trade above the $80,000 mark. Corporate holdings in BTC have increased in the first quarter of 2026 and sentiment around the leading crypto is improving. The Unified Sentiment Index showed greed for the first time since January 2026.
At the same time, network activity has fallen to a two-year low, AMBCrypto reported. The current rally showed signs of structural weakness, making the rally more vulnerable.
It can be argued that institutional investors have changed the traditional rules surrounding BTC. The reduced activity may not be the blow the bulls took a few years ago.
Bitcoin institutionalization in the making?
In a post on CryptoQuant, analyst Darkfost compared Bitcoin Exchange Inflows using issued UTXOs from 2016 and 2026. Ten years ago, inflow volumes were relatively constant. Price movements tended to be less correlated with traditional markets.
By 2026, volume trends have shifted significantly. The total inflow volumes are slightly lower. Each weekend also saw a significant reduction in trading volume, a big difference from 2016.
This reflected the increasingly important role institutional investors play in dictating Bitcoin price movements. The transition towards greater influence of institutional capital started in 2018 and became clearer in 2019 and 2020.
This indicated a structural shift for BTC in recent years.
The big picture argument here is that the lens of historical cycles through which we view Bitcoin may also have changed due to institutional entities and their influence on the market.
The realized limit tracks the total value of an asset at the price at which each coin last moved on the chain, multiplied by the circulating supply.
According to analyst Axel Adler Jr. Tracking the 30-day change in BTC’s realized limit can act as a proxy for spot capital flows into and out of the market.
The statistic has been negative for 75 days. On May 6, the benchmark rose to +0.22%. Technically this was an exit from negative territory, but this does not indicate a recovery in demand.
The measure must remain above +1% for seven to ten days to indicate notable capital inflows into the spot market.
Until this happens, the move into positive territory looks more like reduced selling than active, sustained demand that could put Bitcoin in a long-term uptrend.
Final summary
- The upward trend since March has been accompanied by reduced network activity, but this does not necessarily indicate structural weakness.
- The recent transition into positive territory was not large enough to indicate a move towards a growth phase of the bull market.