Why Bitcoin Isn’t Surging Despite Institutional Buying? CryptoQuant Points to Massive Demand Drop
Despite heavy Bitcoin accumulation by U.S. exchange-traded funds (ETFs) and corporate giants like MicroStrategy (MSTR), Bitcoin’s price has remained stagnant — and a new analysis from CryptoQuant explains why.
In its July 3, 2025 report, CryptoQuant revealed that broader spot market demand for Bitcoin has sharply declined, outweighing institutional purchases and blocking any potential for a major price rally.
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Institutional Interest Slows Down
According to the report, while institutions like spot Bitcoin ETFs and MicroStrategy continue to accumulate BTC, their pace has slowed significantly since late 2024:
ETFs: 30-day BTC purchases dropped from 86,000 BTC (Dec 7, 2024) to just 40,000 BTC by early July 2025 — a 53% decline.
MicroStrategy: Their purchases fell dramatically from 171,000 BTC at the peak to just 16,000 BTC, marking a 90% drop.
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Institutional Buys Only Part of the Picture
Even at its peak, institutional demand represented only 33% of the total 771,000 BTC spot demand growth seen in late 2024. This highlights the importance of broader market participants — retail buyers, crypto whales, and global investors — whose activity drives the majority of demand.
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A Massive Drop in Market-Wide Demand
CryptoQuant’s on-chain data paints a worrying picture: in the 30 days leading up to the report, overall Bitcoin demand contracted by 895,BTC. This dramatic drop has erased any bullish momentum expected from institutional buys.
