Despite continued accumulation by Bitcoin exchange traded funds and institutional investors, overall spot demand in the market is still declining. According to CryptoQuant, broader selling pressure is outweighing the impact of these purchases.
The firm explained that selling from retail traders and other participants is stronger than the additional buying coming from institutions. As a result, the market continues to experience a distribution phase rather than a recovery in demand.
Weak Spot Demand Persists
In March, Bitcoin ETFs recorded a sharp rise in activity, with about 50,000 BTC accumulated over a 30 day period. This marked the highest level since October 2025. At the same time, Strategy acquired around 44,000 BTC within the same timeframe.
However, overall demand trends told a different story. Apparent demand growth stood at negative 63,000 BTC by the end of March, highlighting sustained selling pressure across the market. This decline in spot demand has been ongoing since late November 2025, reinforcing the idea that the market is in a prolonged distribution phase.
Large holders, often referred to as whales, have shifted into selling mode. Their holdings have decreased by about 188,000 BTC over the past year. After accumulating more than 200,000 BTC in 2024, these investors began selling aggressively from mid 2025, with the pace increasing toward the end of the year and into early 2026.
CryptoQuant noted that long term indicators confirm this trend is structural rather than temporary. Historically, extended periods of whale selling have been associated with continued price weakness, suggesting that selling pressure remains a major obstacle for the market.
Mixed Signals Across Investor Groups
Unlike whales, mid sized holders, sometimes called dolphins, are still accumulating Bitcoin, although at a much slower pace. Their holdings have dropped significantly, from nearly 1 million BTC in October 2025 to about 429,000 BTC today.
Demand from investors in the United States has also weakened. This is reflected in the Coinbase Premium indicator turning negative again. The metric has struggled to recover since Bitcoin reached its all time high of 126,000 dollars in early October.
Given the current conditions, analysts believe Bitcoin could see a short term recovery if broader macro factors improve. A potential easing of tensions related to the situation involving Iran may act as a positive trigger, possibly pushing BTC toward the 71,500 to 81,200 dollar range.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
