Institutional Buying Can’t Shake Bitcoin From Sideways Trend as Spot Interest Slows

Despite continued enthusiasm from big investors, bitcoin’s price remains in a holding pattern, weighed down by weakening demand in the spot market—a factor that could block any significant price rally in the near term.

As Asian markets kick off the week, bitcoin (BTC) is trading close to $109,000, marking a modest 0.8% increase over the past seven days and a 4.5% rise for the month, based on CoinDesk data.

Even as Michael Saylor’s MicroStrategy (MSTR) keeps adding to its bitcoin stash, bitcoin ETFs maintain steady inflows, and more corporations embrace BTC as part of their treasury reserves, the cryptocurrency has yet to reclaim its previous record highs.

According to a fresh report from CryptoQuant, there’s a key reason for the stall: institutional buying alone isn’t enough to counteract declining overall spot demand for bitcoin.

“The annual growth of bitcoin demand tells a similar story: ETFs and MSTR buying make up part of the demand, but overall demand contraction is outweighing these purchases. It’s the acceleration in total demand growth that typically triggers price rallies,” CryptoQuant explained in its latest report.

CryptoQuant estimates bitcoin demand has shrunk by about -895,000 BTC over the past 30 days—a sharp contraction that underscores the current lack of momentum.

Meanwhile, institutional purchases have lost steam since December. At the end of last year, ETFs bought 86,000 BTC, while MicroStrategy acquired 171,000 BTC. Over the past month, however, ETF purchases dropped to 40,000 BTC, and MSTR’s buying dwindled to just 16,000 BTC.

Because of this, bitcoin remains stuck within a narrow price range, with CryptoQuant cautioning that demand levels are too low to fuel a breakout rally.

Adding to the cautious tone is bitcoin’s nearly empty mempool, which suggests lower transaction volumes and diminished retail investor participation.

A central question now is whether institutional investors will keep buying at current levels—or whether declining purchases could weigh further on bitcoin’s price trajectory.

Anthony Scaramucci, founder of SkyBridge Capital, expressed reservations about leaning too heavily on the corporate treasury trend as a long-term driver for bitcoin demand:

“Right now we’re having this replicative treasury company idea. So, you know, it will fade,” Scaramucci told Bloomberg in a recent interview.

“Saylor’s case is different because he’s got a couple different products going now,” he continued. “I’m not negative on the others, because I’m too bullish on bitcoin, but I would just say as an investor, you have to look through the underlying costs associated with each one of these treasury companies.”

Still, Standard Chartered maintains a bullish stance, sticking with its forecast that bitcoin could ultimately hit $200,000.

Market Overview

• BTC: Bitcoin held steady above $108,500 over the weekend, moving up from $108,327 to $108,620 in the past hour. The $108,200–$108,300 zone now serves as support for continued upward movement.
• ETH: Ethereum rose from $2,520.45 to $2,558.63 on July 6, with trading volumes reaching 272,352 ETH. It’s finding support around $2,510 amid macroeconomic uncertainty. June saw $1.1 billion in ETH ETF inflows, and heavy whale accumulation hints at possible upside, though resistance looms near $2,600.
• Gold: Gold climbed 1.91% last week to $3,336.61, fueled by dollar weakness, a 91.5% chance of a Fed rate cut in September, fresh trade tension concerns, and a 73% spike in China’s gold imports.
• Nikkei 225: Japan’s Nikkei 225 dipped 0.26% as traders reacted to mixed signals from the White House about potential tariffs.