Why Isn't the Bitcoin Price Rising? Experts Highlight Demand Contraction!.

While the purchases by ETFs and institutional companies are not enough to raise the Bitcoin price, there is a significant contraction in overall market demand.

Although the Bitcoin (BTC) price has been stuck in a certain range for a long time, investors are worried, but experts point to a weakening in overall market demand behind this stagnation. In recent months, there has been a significant decrease in Bitcoin purchases by large companies like ETFs and MicroStrategy (MSTR), which is preventing prices from reaching new highs.

According to a new report shared by cryptocurrency analyst Julio Moreno, the large-scale Bitcoin purchases made by ETFs and MSTR constitute only a small part of the total demand in the market. Particularly, the corporate demand that peaked at the end of last year has significantly decreased today.

According to the data provided in the report, Bitcoin purchases by ETFs have dropped from 86,000 BTC on December 7, 2024, to 40,000 BTC today, showing a decrease of 53%. Similarly, MicroStrategy’s purchases have dramatically decreased by 90%, from 171,000 BTC to only 16,000 BTC over the last 30 days.

The most critical point preventing movement in the Bitcoin price is the weakening of overall spot demand in the market. Over the past 30 days, the total Bitcoin demand in the market has decreased by 895,000 BTC, overshadowing the purchases made by institutional companies. Therefore, experts state that for the Bitcoin price to reach new highs, there needs to be a serious revival in demand across the entire market.