More than 320K BTC was added to wallets and ETF holdings as the available market supply kept dropping fast.
Long-term holders and ETF inflows removed BTC from trading markets,, causing pressure on Bitcoin’s liquidity.
The chart shows demand from both ETFs and accumulators growing fast as supply on exchanges shrinks daily.
Bitcoin liquidity is shrinking rapidly as U.S. spot ETF demand surges, placing strong pressure on exchange reserves and market supply. Data from CryptoQuant shows a spike in accumulator address demand, paired with a record-setting ETF inflow, that has pushed liquidity metrics to new lows this year.
https://twitter.com/QuintenFrancois/status/1952643626317611229 ETF Demand Reaches Unprecedented Levels
The green line in the chart represents ETF demand, which has climbed sharply since early 2025. This spike is correlated with increased institutional interest in spot Bitcoin exchange-traded funds across U.S. markets. The surge is absorbing large quantities of BTC, significantly tightening available supply.
ETF inflows have reached their highest point since the beginning of Bitcoin’s tracked trading data, with tens of thousands of BTC being allocated monthly. As this demand grew, it pulled liquidity away from non-U.S. exchanges and general market supply, compressing the availability of coins for open trade.
This demand increase has coincided with a continued uptrend in Bitcoin’s price. As shown in the white price line, BTC has climbed steadily since ETF demand accelerated. Market participants see this alignment as a potential signal that institutional buying may be driving long-term price action.
Accumulator Demand Shows Similar 2020 Pattern
The pink bars in the chart represent accumulator address demand—wallets that historically acquire Bitcoin without regular selling. In previous years, notably during late 2020, similar accumulation phases preceded major rallies. The current spike has surpassed all past data in height and consistency.
This group of holders includes long-term investors and entities with large positions. Their activity has surged since early Q2 2025, mirroring behavior seen before Bitcoin’s 2021 bull run. The total 30-day balance change now reflects over 320,000 BTC in net demand by accumulators.
CryptoQuant’s data excludes non-U.S. exchanges to focus on U.S.-driven market behavior, which better reflects ETF-influenced flows. This refined view clarifies the direct impact that ETF demand has had on inventory depletion among U.S.-linked liquidity sources.
Historically, when these entities accumulate at scale, price increases follow due to lower circulating supply. The strong relationship between rising prices and shrinking inventory supports this thesis again in 2025. With this demand surge, the possibility of a higher sustained price range becomes more plausible.
Can Liquidity Withstand Growing Institutional Demand?
Bitcoin’s liquidity inventory ratio, shown in gray, continues to trend downward. This indicates that liquid supply available on exchanges is being withdrawn faster than it is replaced. The sharp divergence between ETF and accumulator demand versus supply raises a pivotal question: can current liquidity meet future institutional needs?
If ETF demand continues at this scale, spot markets may face further supply constraints. This may lead to price volatility or forced repricing if sell-side depth cannot support buying pressure. Analysts will watch whether liquidity inflows from miners and short-term holders can compensate for outflows.
The sustained decline in exchange-side liquidity inventory is among the strongest seen since Bitcoin’s inception. Combined with persistent ETF demand, it sets up an environment where market makers must adapt to lower inventories. Will Bitcoin’s infrastructure keep up with this institutional shift?
