Bitcoin Demand Slows as Institutional Inflows and Liquidity Growth Remain Weak

• Bitcoin demand drops while new investor interest remains low and long-term holders reduce accumulation.
• ETF inflows slow down showing weak institutional interest and adding pressure on Bitcoin price recovery.
• Liquidity growth stays below trend making it harder for Bitcoin to regain strong upward momentum.

Bitcoin’s recent momentum has weakened, according to data from CryptoQuant. The decline in spot demand has slowed, but recovery signs remain absent. The apparent demand for Bitcoin decreased by 146,000 BTC across the past 30 days. 

The recorded number of 146,000 BTC represents a positive trend when compared to the 311,000 BTC decrease on March 27. 

However, demand momentum has continued to fall. It now shows a negative shift of 642,000 BTC. This marks the weakest reading since October 2024. Analysts view this as a major concern for price recovery. Without stronger demand from new investors, long-term holders dominate the market.

Institutional Buying Through ETFs Stalls

Institutional investors have also pulled back. U.S.-based spot Bitcoin ETFs show little movement since late March. Net daily flows now range from -5,000 to +3,000 BTC. This is a steep drop from the 8,000+ BTC daily inflows seen in late 2024.

So far in 2025, these ETFs have sold 10,000 BTC. During the same period in 2024, they bought 208,000 BTC. This sharp contrast highlights weakened institutional confidence. Analysts say ETF flows are crucial for price support. Without them, upward momentum is hard to sustain.

Large Holders Reduce Exposure

Large holders have also reduced their Bitcoin exposure. Over the past week, they sold approximately 30,000 BTC. Their monthly accumulation rate also dropped sharply. It fell from 2.7% in late March to just 0.4% now. This is the lowest rate since February 20.

Such moves suggest risk aversion among long-term investors. Many appear to be locking in gains or preparing for further downside.

Liquidity Recovery Falls Short

Crypto market liquidity is growing slowly. However, it remains below levels seen during stronger market rallies. USDT’s market cap grew by $2.9 billion over the last two months. However, this figure falls short of the usual $5 billion rise linked with major Bitcoin rallies.

The 30-day moving average for USDT growth remains unmet. This points to a continued liquidity gap that limits price expansion.

Price Faces Resistance at Key Level

Bitcoin is now struggling near the $91,000–$92,000 range. This level aligns with the realized price of active traders. On-chain metrics show this area may act as a resistance zone.

With investor sentiment cautious, this resistance holds firm. Until demand and liquidity improve, Bitcoin may remain range-bound.