Bitcoin Spot Demand Hits Record Low -2 Million BTC

Bitcoin's spot demand has reached an unprecedented low, with a record negative momentum of -2 million BTC. This significant drop in demand indicates a substantial shift in market dynamics, as short-term holders have offloaded approximately 800,000 BTC since May 27 without a corresponding increase in long-term accumulation. This imbalance has created a demand deficit, with the 30-day net change in supply revealing that short-term holders are rapidly selling their assets into the market.

Despite this strong selling pressure, Bitcoin's price has remained above $100,000, showing a notable divergence between price and demand. This disconnect began in early May 2025 and has persisted, with the 30-day simple moving average of demand momentum confirming a sustained downturn. The absence of new BTC demand suggests a structural change in market behavior, as the exit of short-term holders is not matched by increased long-term accumulation.

This historic breakdown in the spot market structure raises uncertainty about the near-term market direction. The steepest demand decline ever recorded, coupled with the price remaining high, creates a challenging environment for market participants. The lack of institutional buying, which has been a key driver of Bitcoin's price rallies in recent years, further complicates the situation. Without significant institutional support, Bitcoin may struggle to regain its momentum.

The current market dynamics are influenced by broader economic factors and investor caution, potentially exacerbated by geopolitical tensions. These tensions often lead to increased market volatility and risk aversion, as investors seek safer havens for their capital. In this context, Bitcoin, despite its reputation as a store of value, may be perceived as too risky, leading to a sell-off. The negative demand figure highlights the lack of confidence in the cryptocurrency's near-term prospects, as more Bitcoin is being sold than bought.

The price decline, though modest, adds to the bearish sentiment, as it suggests that even small negative catalysts can trigger selling pressure. The drop in Bitcoin's price below the $100,000 mark further underscores the current market dynamics, indicating that the market may be in for a period of consolidation or even further declines. However, it is important to note that Bitcoin has historically shown resilience in the face of adversity, and this current downturn may present buying opportunities for long-term investors.