Bitcoin’s recent momentum is showing signs of stabilization, but a meaningful rebound in demand has yet to materialize, according to on-chain analytics firm CryptoQuant.
While the contraction in Bitcoin’s spot demand has slowed, demand metrics remain weak, and broader market indicators suggest continued hesitation among investors.
Over the past 30 days, Bitcoin’s apparent demand has declined by 146,000 BTC, a visible improvement from the sharper 311,000 BTC drop recorded on March 27. However, demand momentum—which tracks the level of buying by new investors relative to long-term holders—has deteriorated further. It’s now down by 642,000 BTC, marking the most negative reading since October 2024.
Analysts warn that for Bitcoin to resume a sustainable rally, both demand and momentum must not only stabilize but return to consistent positive growth.
ETF Inflows Flatline Amid Weakened Institutional Interest
Institutional participation through U.S.-based spot Bitcoin ETFs has also plateaued, indicating a broader cooling in appetite. Since late March, net purchases by these ETFs have fluctuated between -5,000 and +3,000 BTC per day—well below the highs of 8,000+ daily inflows recorded during the bullish surge of November–December 2024.
Comparative data further reveals the scale of this slowdown: U.S. Bitcoin ETFs have sold a net 10,000 BTC so far in 2025. This is in stark contrast to the same period in 2024 when they had purchased a net 208,000 BTC.
Market analysts suggest that increased ETF participation is a key component for reigniting upward price momentum, which remains lacking.
Adding to the caution, large Bitcoin holders have begun to reduce their positions. Their collective holdings have decreased by roughly 30,000 BTC over the past week, and their monthly accumulation rate has dipped from 2.7% in late March to just 0.4%—the slowest pace since February 20.
Liquidity Growth Still Lags Market Needs
While crypto market liquidity is expanding modestly, it’s doing so below trend. USDT market cap, a widely used proxy for crypto liquidity, has grown by $2.9 billion over the last two months.
However, this increase falls short of the $5 billion benchmark typically associated with strong Bitcoin rallies. It also remains below the 30-day moving average, emphasizing ongoing liquidity constraints.
Price-wise, Bitcoin is facing technical resistance around the $91,000–$92,000 range, corresponding with the trader’s on-chain realized price level.
This metric can serve as either support or resistance, depending on market sentiment. For now, prevailing bearish conditions suggest it is acting as a ceiling, further capping upside potential.
In conclusion, the data from CryptoQuant indicates that Bitcoin’s demand momentum has dropped significantly, with ETF inflows drying up and liquidity growth lagging behind market needs. It is essential for demand and momentum to stabilize and grow positively for Bitcoin to resume a sustainable rally. Investors should closely monitor these factors to gauge the future direction of the cryptocurrency market.