Bitcoin Demand Weakness Persists as ETF Inflows and Liquidity Lag
Bitcoin demand weakness is emerging as a major obstacle for the world’s largest cryptocurrency, with on-chain data signaling limited investor conviction and lackluster institutional interest. While recent figures show that the contraction in Bitcoin demand has slowed, broader indicators suggest that a sustainable rally remains elusive.
Data from CryptoQuant shows that Bitcoin’s spot demand fell by 146,000 BTC during the last 30 days, a significant improvement above the 311,000 BTC dip recorded in late March. The decline in demand momentum, nevertheless, moderates the hope. Tracking the purchasing behaviour of new entrants against long-term holders, this important indicator has dropped 642,000 BTC to its worst negative level since October 2024.
Continued weakening in Bitcoin demand indicates investor uncertainty; analysts say that before any significant price breakout can take place, both demand and momentum have to change direction and demonstrate consistent increase.
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ETF Inflows Flatline Amid Institutional Apathy
Once a major motivator of Bitcoin’s growth, institutional support has also begun to show signs of weariness. Previously a cause of bullish momentum, U.S.-based spot Bitcoin ETFs have now levelled. Daily nett inflows have been between -5,000 and +3,000 BTC since late March, well below the high inflows of more than 8,000 BTC noted during the November–December 2024 spike.
Year-to-date numbers show an even more dismal scene. Bitcoin ETFs have nett sold 10,000 BTC in 2025. Contrast that to the same time in 2024, when ETFs bought a nett 208,000 BTC. This big difference highlights declining institutional interest and is quite important in extending the existing Bitcoin demand slump.
Big holders are also helping to create the careful atmosphere. In the last week, they have lowered their combined exposure by almost 30,000 BTC. From 2.7% in March to only 0.4%, their monthly accumulation rate has dropped to its lowest level in almost two months.
Liquidity Growth Still Fails to Meet Market Expectations
Apart from demand statistics, the cryptocurrency market’s liquidity is still behind trend. A commonly used gauge of crypto liquidity, Tether’s (USDT) market cap has only grown by $2.9 billion in the last two months. This falls far short of the $5 billion level usually linked with strong Bitcoin rallies.
Furthermore, the rise in liquidity is still below its 30-day moving average, emphasising that the market is not yet ready for a significant bullish move. When combined with low demand and declining momentum, liquidity limits produce a situation in which upside possibility is limited.
Technical Roadblocks Limit Upside
Technically, Bitcoin is seeing significant resistance in the $91,000 to $92,000 zone. This zone closely corresponds to the realised price level of short-term holders, which now serves as a psychological and structural obstacle.
In bull markets, this actual pricing might provide as support. But in times of declining Bitcoin demand, it often acts as a ceiling, hence supporting negative attitude and restricting price breakthroughs.
Looking Forward
Bitcoin’s future depends on a general recovery on several fronts. Overcoming the present stagnation calls for a resurgence in ETF inflows, fresh interest from major investors, and faster market liquidity expansion.
Until then, the price movement will be significantly impacted by Bitcoin demand weakness. Although short-term volatility might provide trading chances, long-term investors and experts are intently monitoring indications of sustained demand coming back to the market.
