Bitcoin Plunges to One-Month Low Amidst Waning Demand and Institutional Pause

Bitcoin's (BTC) price trajectory has taken a notable turn, reaching a one-month low of $93,000 on February 19, 2025. This movement marks a departure from the asset's strong performance following the U.S. elections in late 2024, with multiple factors contributing to the current market dynamics.

Recent data from Cryptoquant highlights a substantial decline in apparent demand, which has fallen 75% from 279,000 BTC in early December 2024 to 70,000 BTC by mid-February 2025. This dramatic reduction in demand presents a stark contrast to the optimistic market sentiment that characterized the post-election period.

The introduction of spot Bitcoin ETFs, initially heralded as a watershed moment for institutional adoption, has shown signs of cooling. Daily U.S. ETF purchases have reversed course, dropping from positive inflows of 18,000 BTC in early November 2024 to negative flows of 1,000 BTC in recent data.

Grayscale's GBTC has emerged as a notable outlier in the ETF landscape. Excluding GBTC, ETF holdings have remained stagnant since late 2024, indicating a broader pause in institutional participation. This development has raised questions about the sustainability of Bitcoin's recent price levels.

Network activity, a fundamental indicator of blockchain usage and adoption, has deteriorated to yearly lows. Cryptoquant's Bitcoin Network Activity Index has experienced a 17% decline from its November 2024 peak, falling to 3,658 and dipping below its 365-day moving average for the first time since July 2021.

The stablecoin market, often viewed as a barometer for crypto market liquidity, has shown signs of deceleration. While the total stablecoin market capitalization has exceeded $200 billion, the 60-day growth rate has decreased by 92%, falling from $20.4 billion in December 2024 to $1.5 billion.

Market analysts have identified several potential catalysts for the current price pressure, including inflation concerns and possible selling pressure related to FTX creditor repayments. The prospect of new import tariffs has added another layer of uncertainty to