Institutional demand for Bitcoin is showing new signs of weakening, eliminating one of the market’s strongest sources of structural spot buying.
US Spot Bitcoin and Ethereum ETFs are experiencing Net Outflows for the seventh consecutive day, with $445 million outflows from Bitcoin and $12.85 million outflows from Ethereum yesterday.
As payments 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 sustained outflows reduce institutional buying, which previously absorbed market supply during corrections.
If whales or long-term investors do not replace this demand, Bitcoin may struggle to mount a sustainable recovery. Otherwise, renewed institutional entries could restore stronger price support.
Whale activity signals renewed faith
Despite persistent ETF outflows, large Bitcoin holders reacted differently to prices revisiting key support levels. Afterwards bitcoin It briefly dropped below $60,000 before returning to that area, with whale trading volumes increasing rapidly.
The network recorded 6,920 transactions over $100,000 and 1,438 transactions over $1 million; This marks the second largest increase in two months. This response suggests that larger investors view the correction as an accumulation window rather than a signal to reduce risk.
If whales continue to absorb supply while foreign exchange balances are tight, downward pressure may gradually ease. Still, broader spot participation needs to strengthen before Bitcoin can turn accumulation into a sustainable recovery.
Bitcoin’s Long-Term Holders Are Entering Capitulation
The whale accumulation reflects growing confidence among major investors. However, Long Term Holders (LTH) are not responding to recent market weakness in the same way.
Long Term Holder SOPR has moved deep into negative territory; This suggests that some experienced investors are now taking losses after Bitcoin repeatedly traded below $60,000. The monthly average decreased from 1.03 to 0.8.
This represents a loss of approximately 13% on LTH’s investments last month.
Meanwhile, the decline in the annual average from 2.06 to 1.46 confirmed that the realized profit continued to shrink. At this point, the faith of the elderly owners appears to be eroding.
But selling pressure often subsides as profitable supply runs out, setting the stage for a gradual recovery rather than a sudden reversal.
Final Summary
- As Bitcoin (BTC) ETF outflows continue to weaken institutional demand, whale accumulation is helping alleviate short-term selling pressure.
- Capitulation by Bitcoin’s long-term holders could dampen future selloffs, but broader spot demand remains key to recovery.
