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- Institutional Bitcoin demand is declining, including treasury firms and ETFs.
- BTC price fell below 365-day moving average, signaling strong resistance.
- Previous market catalysts are fading; volatility likely in coming months.
Bitcoin (BTC) is showing signs of entering a bearish phase, with institutional interest weakening and key technical indicators signaling a potential downturn. According to CryptoQuant’s latest weekly report shared with Cointelegraph, BTC’s market conditions have become “most bearish” within the current bull cycle that began in January 2023.
Institutional Demand Weakens
CryptoQuant’s Bull Score Index has plummeted to extreme bearish levels of 20/100, reflecting a stark decline in market confidence. The Bitcoin price has also fallen below its 365-day moving average of $102,000—a critical technical threshold that marked the start of the 2022 bear market.
Institutional buying, particularly by Bitcoin treasury firms, has slowed considerably. Strategy, led by Michael Saylor, recently acquired 8,178 BTC ($835 million), its largest purchase since July 2025. However, this is far smaller than previous acquisitions. Other corporate buyers, including Metaplanet, have halted purchases or sold portions of their holdings, indicating a broader trend of tapering corporate demand.
ETF Inflows Decline
Bitcoin exchange-traded funds (ETFs) have also seen reduced activity. Year-to-date inflows stand at $27.4 billion, roughly 30% lower than last year’s $41.7 billion, according to CoinShares. This reduction in ETF participation reflects a cautious sentiment among institutional investors, leaving Bitcoin more vulnerable to price swings.
Market Catalysts Are Fading
CryptoQuant highlighted that prior catalysts driving Bitcoin prices—such as Donald Trump’s 2024 election victory and the 2025 launch of several Bitcoin Treasury Companies—are no longer influencing the market. Without new drivers, including potential U.S. government strategic reserves or further Federal Reserve rate cuts, Bitcoin’s momentum may remain muted.
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The current price action also aligns with Bitcoin’s historical four-year cycles, suggesting the 2022–2025 bull phase could be concluding. Despite a 28% drawdown to support levels near $90,000–$92,000, short-term rallies of 40%–50% remain possible. Yet, the 365-day moving average at $102,600 now serves as strong resistance.
Bitcoin’s recent drop below $90,000, reaching $88,400—the lowest since April 2025—underscores the ongoing bearish sentiment. While long-term growth potential exists, traders and investors should brace for volatility as institutional demand remains subdued and key catalysts are absent.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
