Many people may wonder: despite the continuous increase in Bitcoin holdings by ETF funds, MicroStrategy, and other enterprises, why hasn't its price soared to historical highs? According to analysis by CryptoQuant, a key reason is that, although these institutions' purchasing behavior is considerable, it only accounts for a small portion of the overall demand in the spot market.
For example, even during the peak demand growth period for Bitcoin in December 2024, the demand from ETFs and MicroStrategy only accounted for 33% of the total demand increase (approximately 771,000 Bitcoins), highlighting the existence of other larger and unobservable demands from big holders and retail investors in the market.
Additionally, in recent months, the broad spot demand has been continuously weakening, with the overall demand for Bitcoin shrinking significantly by 895,000 coins in the past thirty days, effectively offsetting the positive price impact brought about by institutional buying. Therefore, even though the highly anticipated purchasing behavior continues, the net demand growth for Bitcoin is slowing down, thereby limiting the upward momentum of prices and placing Bitcoin in a consolidation phase rather than aiding it to break through.
Furthermore, compared to the period from November to December 2024, the purchasing speed of Bitcoin by U.S. spot ETFs and MicroStrategy has slowed down this year. The Bitcoin purchase volume of ETFs in thirty days has decreased from 86,000 coins on December 7, 2024, to 71,000 coins on May 18, 2025, and then to 40,000 coins last week, representing a decrease of 53% during this period. At the same time, the purchasing volume of MicroStrategy has dropped to 16,000 coins in the past thirty days, down from a peak of 171,000 coins reached in December 2024, a decrease of 90%.
Overall, the public purchasing behavior of Bitcoin by U.S. spot ETFs, MicroStrategy, and other institutions is generally favorable for the rise in Bitcoin prices. However, it only represents the tip of the iceberg in terms of total demand and is merely a positive sentiment at the news level, which is not sufficient to push prices to new historical highs. If the overall demand from large holders and other retail investors is simultaneously decreasing, it will be difficult for Bitcoin to break through new highs solely based on the purchasing power of the spot market in the short term.
"MICA Daily｜CryptoQuant Report: Why are institutions continuously buying, yet Bitcoin hasn't reached a new high?" This article was first published by (BlockKe).
