Institutional demand for Bitcoin is showing new signs of weakening, removing one of the market’s strongest sources of structural spot buying.
The US Spot Bitcoin and Ethereum ETFs are experiencing their seventh consecutive day of net outflows, with $445 million coming from Bitcoin and $12.85 million from Ethereum yesterday.
As redemptions continued, monthly Bitcoin ETF flows turned negative by approximately $4.06 billion, reducing total ETF assets to $72.82 billion. This trend is important because continued outflows reduce the institutional purchases that previously absorbed market supply during corrections.
Unless whales or long-term investors replace that demand, Bitcoin could struggle to mount a sustainable recovery. Otherwise, renewed institutional inflows could restore stronger price support.
Whale activity indicates a renewed belief
Despite continued ETF outflows, large Bitcoin holders reacted differently as prices revisited key support levels. After Bitcoin fell below $60,000 for a short time before returning to that range, whale trading volumes increased rapidly.
The network recorded 6,920 transactions above $100,000 and 1,438 above $1 million, marking the second-largest spike in two months. This response suggests that larger investors saw the correction as an accumulation period and not as a signal to reduce their exposure.
If whales continue to absorb supply while exchange rates remain capped, downward pressure could gradually ease. Still, broader spot participation must strengthen before Bitcoin can turn accumulation into a sustainable recovery.
Bitcoin’s long-term holders are capitulating
The accumulation of whales reflects growing confidence among larger investors. However, Long-Term Holders (LTH) are not reacting uniformly to the recent market weakness.
The Long-Term Holder SOPR has fallen deeper into negative territory, indicating that some seasoned investors are now realizing losses after Bitcoin repeatedly trades below $60,000. The monthly average has fallen from 1.03 to 0.8.
That would indicate a loss of about 13% for LTH on their investment over the past month.
Meanwhile, the annual average fell from 2.06 to 1.46, confirming that realized profits continue to shrink. At this point, it appears that the conviction of older holders is eroding.
However, as profitable supply is depleted, selling pressure often subsides, laying the groundwork for a gradual recovery rather than an immediate turnaround.
Final summary
- Bitcoin [BTC] ETF outflows continue to weaken institutional demand, while whale accumulation helps ease short-term selling pressure.
- The capitulation of long-term Bitcoin holders may reduce future selling, but broader spot market demand remains key to recovery.