Selling by Bitcoin ‘whales’ blunts institutional demand
Why it matters: Aggressive whale selling and reduced demand have kept Bitcoin's price 45% below its $126,000 peak.
- CryptoQuant reports that apparent Bitcoin demand was negative by approximately 63,000 tokens as of late last month, indicating that selling from retail and other market participants is offsetting institutional buying.
- Bitcoin whales, who accumulated 200,000 Bitcoin during the 2024 bull market, have turned into net sellers, aggressively distributing tokens since mid-2025, accelerating through Q4 2025.
- Strategy Inc., led by Michael Saylor, was a significant buyer in Q1, accumulating nearly 90,000 Bitcoin, but this alone could not offset the overall demand contraction of 166,000 tokens.
- Mid-tier investors are slowing their Bitcoin purchases, removing another layer of market support.
- US-based Bitcoin demand has weakened, with the Coinbase Premium turning negative, signaling reduced buying interest from American investors.
- CryptoQuant suggests a short-term price rebound is possible if macro conditions improve, specifically if the US-Iran conflict de-escalates, potentially triggering a relief rally.
Despite institutional buying from entities like Strategy Inc. and Bitcoin ETFs, overall Bitcoin demand has contracted significantly, driven by aggressive selling from large holders, or 'whales,' and slowing purchases from mid-tier investors. This sustained negative demand, totaling 63,000 tokens as of late last month, has blunted price recovery, leaving Bitcoin 45% below its October peak of $126,000.
