Bitcoin Update: Institutional Investments Decline as Long-Term Holders Liquidate

Long-term Holder Selling: Long-term Bitcoin holders are beginning to sell their assets, with approximately 790,000 BTC sold in the past month, indicating a shift in market dynamics as demand from new buyers has significantly weakened.

Institutional Inflows Decline: Institutional demand from spot Bitcoin ETFs and Michael Saylor's Strategy Inc. has stalled, with ETF inflows turning negative and Strategy's accumulation flattening, removing crucial support for the market.

Market Dynamics Shift: Unlike previous bull markets where long-term holder selling was offset by new demand, the current market is experiencing a fragile balance with fading demand and liquidity growth, leading to a potential consolidation period.

Analysts' Concerns: Analysts warn that without new inflows, Bitcoin may face challenges in regaining momentum, as the market struggles to recover from recent turbulence and the typical feedback loop of demand and supply has broken down.