Overview
Institutional purchases of Bitcoin (BTC) are under scrutiny as they fail to balance a significant downturn in spot market demand, raising alarms about Bitcoin’s immediate price stability.
Key Points
- Demand from institutions isn’t compensating for the plummeting spot market.
- Institutional buying has decreased compared to the previous year.
- Standard Chartered reaffirms its ambitious $200,000 BTC price forecast.
Market Snapshot
- As the Asian markets open, BTC is trading around $109,354.93, experiencing an increase of 0.8% over the past week and 4.5% over the last month, as per CoinDesk data.
BTC Price
Institutional Demand Versus Spot Demand
Despite significant institutional engagements such as larger ETF inflows and purchases by MicroStrategy, the general appetite for spot BTC is contracting, leading to a 30-day demand dip of -895K BTC.
A recent report from CryptoQuant concludes: “The annual growth of bitcoin demand indicates that while ETFs and MSTR purchases contribute positively, an overall contraction in demand overshadows these contributions.”
CryptoQuant adds that demand from ETFs and MicroStrategy is declining, noting ETF purchases dropped from 86,000 BTC in December to just 40,000 BTC recently.
Additional Insights
- BTC appears to be in a consolidation phase, lacking sufficient demand for a price breakout.
- An almost empty Bitcoin mempool suggests reduced retail market interest.
- Scaramucci anticipates that the current trend of companies adopting BTC treasury management will eventually wane.
Market Movements
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