Institutional Bitcoin demand has once again outpaced new supply after six weeks, signaling a significant shift in the dynamics of the cryptocurrency market.
The latest data shows that institutional buying is now outstripping daily Bitcoin mining, reflecting renewed interest from large-scale players.
According to a report by Capriole Investments, a quantitative investment and digital asset firm, institutional demand for Bitcoin is now around 13% higher than daily supply from miners. This is the first time such a situation has occurred since early November, following a period of sustained pressure in the crypto market.
The change comes as Bitcoin’s price is still in a significant correction phase. The value of the largest digital asset has fallen by more than 30% from its high of around $126,000 in October to around $80,500 today.
The price drop suggests that despite the increase in institutional demand, overall market sentiment remains fragile.
Capriole also reported outflows from Bitcoin ETFs of over $600 million in just two days this week.
This reflects a very active market, with some institutions taking steps to reduce exposure due to price volatility and global macroeconomic pressures.
Capriole Investments founder Charles Edwards explained that the fall in Bitcoin prices during this period has put significant pressure on institutional investors, especially companies that use Bitcoin as a corporate treasury asset. This pressure has not only affected the value of their holdings, but also affected the performance of the shares and the financial structure of the companies involved.
A prime example is Strategy, which has one of the largest Bitcoin treasuries in the world. Despite the fall in price and stock performance, the company has continued to add to its Bitcoin holdings.
Overall, Bitcoin remains attractive from a network fundamentals and supply-demand balance, especially with institutional buying once again outpacing new supply. However, pressure from the corporate treasury sector and ETF outflows are expected to continue to challenge price recovery in the near term.
This situation shows that despite the recovery of institutional interest, the Bitcoin market is still in a phase of uncertainty, and further price movements depend on the stability of global sentiment and the ability of institutions to maintain buying momentum.
