According to CryptoQuant's chart, in January 2025, Bitcoin's apparent demand peaked at around $1.6 million — twice the combined inflows from ETFs and strategy funds. However, that figure has now turned negative, plunging to -$857,000, despite steady ETF inflows.

This indicates that current inflows — even from ETFs — are not enough to offset ongoing outflows. The market may need a major catalyst, such as interest rate cuts, to revive demand. If it happens, the biggest beneficiaries will likely be institutions and their clients, who are becoming increasingly central in the Bitcoin ecosystem.

Alexandre Stachtchenko, strategy director at French exchange Paymium, acknowledged this shift:

"Eventually, retail will have to go through the TradFi rails — it is my long-standing conviction."

However, he clarified that this doesn’t mean direct retail demand will disappear. While wealthier U.S. investors may prefer exposure via BlackRock and similar institutions, retail users in places like Nigeria or Argentina are likely to continue buying and holding BTC directly.

In short, retail demand hasn’t disappeared — it’s just gone quiet. And under the right conditions, it could come roaring back.