The Bitcoin market is under the influence of record selling pressure, despite significant demand from institutional investors and active accumulation through exchange-traded funds (ETFs). This is evidenced by the latest analytical conclusions from CryptoQuant CEO Ki Young Ju, who referred to the current market phase as a “mass ownership change” of the first cryptocurrency.
This is reported by Finway
Institutional Demand Does Not Prevent Price Decline
According to recent data, despite a substantial increase in institutional interest and record ETF purchase volumes, the price of Bitcoin has returned to levels not seen in over a year. This may indicate extremely strong selling pressure in the market. Ki Young Ju emphasized that since the beginning of 2023, Strategy has acquired 711,206 BTC while selling only 32 BTC. Additionally, since March 2024, spot Bitcoin ETFs have accumulated 509,102 BTC, and Strategy has increased its reserves by another 650,706 BTC during the same period.
“Historically, bear markets have only ended after the price fell below the realized value. I believed that a return to this level was unlikely given the influx of funds into ETFs and that Strategy hardly sells its Bitcoins. However, the current price dynamics indicate unusually strong selling pressure,” he wrote.
Structural Changes and Positions of Major Players
In total, as calculated by CryptoQuant, over 1.24 million BTC have been absorbed, yet the price of Bitcoin has not increased. Meanwhile, cryptocurrency exchange reserves currently stand at around 2.7 million BTC, and the Bitcoins attributed to Satoshi Nakamoto are estimated at about 1 million BTC. This indicates that a significant portion of mined coins is concentrated among long-term holders and major players.
Additionally, analysts estimate that the share of Bitcoin supply at a loss has risen to 40.6%. Since 2015, each major market bottom has formed after testing the long-term downward trend line of this indicator. CryptoQuant emphasizes that the share of coins held by long-term holders, ETFs, and institutional investors is increasing, although the indicators have not yet reached historical highs that previously corresponded to the best accumulation opportunities.
The prolonged weakness of the cryptocurrency market has led to Bitcoin losing its place in the top 10 largest assets in the world by market capitalization at the end of May, falling behind leading technology companies and precious metals. Meanwhile, crypto skeptic Peter Schiff suggested that the market has not yet reached its bottom and did not rule out the possibility of Bitcoin’s price falling below $20,000.
As of the preparation of this material, Bitcoin is trading at $64,148, according to TradingView data.
