On Friday, March 27th, the price of Bitcoin fell to around $65,000. This reflects growing uncertainty in broader global financial markets. Interestingly, the decline in the value of major cryptocurrencies occurred despite increased market activity from some institutional investors. A prominent on-chain analytics expert has offered a plausible explanation for the decline in Bitcoin prices despite increased institutional buying activity.
BTC overall demand is still declining
In a new post on social media platform According to on-chain experts, this trend can be explained by a decline in overall spot demand for BTC.
Moreno derived this observation from the Demand Growth Index, which measures the rate of change in investors’ accumulation of a specific cryptocurrency (in this case Bitcoin). This apparent demand growth metric assesses demand by comparing newly mined BTC to the amount of coins that have not been moved in a year.
In his analysis, Moreno excluded spot BTC ETFs and strategies to show differences in movements across the entire index. As you can see in the chart below, BTC demand from exchange-traded funds and the largest corporate holders has been increasing since late March, while overall spot demand remains depressed.
Source: @jjcmoreno on X
In general, news of positive ETF inflows and treasury acquisitions in the new Strategy are happily welcomed as they are believed to have some impact on the valuation of top cryptocurrencies. According to CryptoQuant research director, looking at the activity and strategies of spot ETFs is not enough when determining current Bitcoin demand.
As CryptoQuant revealed in its latest research report, Strategy is the only driver of BTC Treasury demand, which has declined from its 2025 highs. While most BTC treasury firms have reduced market activity, Strategy has continued to double its position through additional Bitcoin purchases.
As reported, the Saylor-led company recently added more than 1,000 coins to its holdings, bringing its Bitcoin vaults to approximately 762,099 BTC (about 3.81% of the total circulating supply). Meanwhile, the U.S. Bitcoin exchange-traded fund (ETF) recorded capital inflows for four consecutive weeks ahead of negative performance this week.
Bitcoin price at a glance
After falling to around $65,500 on Friday, the market leader is currently hovering around $66,300. According to data from CoinGecko, the BTC price has fallen more than 4% in the last 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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