A new analysis from the cryptocurrency research firm CryptoQuant has highlighted that while institutional investments remain strong, the demand for spot Bitcoin is currently experiencing a significant downturn.
Data from the company indicates that by the end of March, there was an apparent decline in demand over a 30-day period amounting to roughly -63,000 $BTC. This suggests that selling pressure in the market is outweighing buying interest.
CryptoQuant emphasized that even with rising purchases from institutions, overall market demand continues to shrink. Individual investors and other participants are outpacing institutional buyers. The report mentions this trend has persisted since November 2025, indicating that the market remains entrenched in a “distribution phase.”
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Additionally, it’s important to note that large holders (whales) who possess between 1,000 and 10,000 $BTC have also shifted to being net sellers. Reports suggest this group’s total holdings have decreased by around 188,000 $BTC over the past year as their moving average continues its downward trajectory. Analysts pointed out that historically prolonged negative accumulation periods among whales correlate with price declines; current data supports ongoing selling pressure as a persistent barrier.
The Coinbase premium index—reflecting investor sentiment within the US—has predominantly remained negative during Bitcoin’s drop into the $65,000-$70,000 range. This trend implies US investors have yet to make a robust comeback into the marketplace.
Nonetheless, CryptoQuant suggests there could be potential for Bitcoin prices to recover if macroeconomic conditions improve. Specifically mentioned is that should tensions between Iran and the US ease up slightly; Bitcoin might rise within a range of $71,500 to $81,200. The report identifies $81,200 as an essential “trader realized price,” which previously served as resistance during January’s bear market rally in 2026.
*This does not constitute investment advice.