Bitcoin demand remains in deep contraction even as Wall Street spot ETFs and Strategy continue to add exposure, according to a new report from CryptoQuant. As of the end of March, Bitcoin’s 30-day apparent demand growth stood at roughly -63,000 BTC, a sign that aggregate selling pressure is still outweighing fresh buying across the market.
ETF inflows and Strategy accumulation have not offset broader selling
CryptoQuant said spot Bitcoin ETFs bought about 50,000 BTC over the past 30 days, the highest level since October 2025. Strategy also remained active, with its 30-day accumulation running at about 44,000 BTC. Institutional demand has clearly been present. Price support from that demand has been limited.
The report said the gap points to stronger selling from retail holders and other market participants, enough to cancel out the incremental buying coming from institutions. CryptoQuant added that the contraction in demand has persisted since late November 2025, reinforcing its view that Bitcoin is still trading in a distribution phase rather than a renewed accumulation cycle.
Whales have turned into net sellers as US buyer appetite stays soft
Holder behavior across wallet sizes also shows a shift. Addresses holding between 1,000 and 10,000 BTC have turned into net distributors, with their balances falling by 188,000 BTC over the past year. CryptoQuant said the downward slope in the 365-day simple moving average suggests this is structural selling, not a brief rotation.
Addresses holding 100 to 1,000 BTC are still accumulating on a yearly basis, but much more slowly than before. Their annual balance growth has dropped from a peak of nearly 1 million BTC in October 2025 to 429,000 BTC, a decline of more than 60%. In the US market, the Coinbase premium index has stayed mostly negative. Even with Bitcoin trading in the $65,000 to $70,000 range, CryptoQuant said US investors have not returned in size.
Easing US-Iran tensions could open a path toward $71,500 and $81,200
While the on-chain picture remains weak, CryptoQuant did not rule out a short-term recovery. The firm said better macro conditions, especially an easing in US-Iran geopolitical tensions, could act as a positive catalyst and push Bitcoin toward the $71,500 area.
If buying momentum strengthens after that, the next resistance level would be the trader realized price at around $81,200. CryptoQuant identified that zone as a key ceiling because it also marked the top reached during the January 2026 bear market rebound. For now, the market is still being shaped by weak internal demand and headline-driven external triggers.