Bitcoin Price Stagnant Despite Institutional Buying
Bitcoin Price Consolidation: Institutional Buying Not Enough
While MicroStrategy (MSTR) continues its substantial Bitcoin (BTC) acquisitions, and Bitcoin ETFs see continued inflows, Bitcoin's price remains below all-time highs. A recent CryptoQuant report reveals the reason: declining spot market demand is outweighing institutional purchases.
Key Findings:
- CryptoQuant data shows a -895K BTC contraction in demand over the last 30 days.
- Compared to December's 86,000 BTC ETF purchases and 171,000 BTC MSTR buys, last month saw a significant drop to 40,000 BTC and 16,000 BTC respectively.
- Bitcoin's nearly empty mempool further supports the lack of retail spot demand.
This slowing institutional buying raises concerns about future price resistance. Anthony Scaramucci of SkyBridge Capital predicts the corporate treasury trend, a significant source of Bitcoin demand, will eventually fade. However, Standard Chartered remains bullish, maintaining a $200K price target.
Market Movements:
- BTC: Consolidated above $108,500, then surged to $108,620, supported around $108,200 - $108,300.
- ETH: Rallied from $2,520.45 to $2,558.63, finding support at $2,510. June saw $1.1 billion in ETH ETF inflows and record whale accumulation.
- Gold: Surged 1.91% to $3,336.61 last week due to a weakening dollar and anticipation of a Federal Reserve rate cut.
- Nikkei 225: Slipped 0.26% amid White House tariff uncertainty.
Elsewhere in Crypto:
- US recession odds on Polymarket fell to 22% as trade tensions eased (CoinDesk)
- Ethereum's growing role in Wall Street's future was highlighted at the Cannes film festival (CNBC)
- Sweden directed police to increase seizures of criminal crypto profits (Decrypt)
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