Bitcoin was closed at over $104,000 in June, marking its highest monthly quarterly performance on record.
It suggests that whether the US spots the funds sold for Bitcoin exchanges or posts robust numbers for the month, there is weak demand for buyers suggesting traditional on-chain metrics.
In June, the US Spot Bitcoin ETF experienced a 12-day influx streak of $400 million on June 25th, including approximately $550 million. data From SOSOVALUE.
Still, observers point to the disconnection caused by how institutions buy Bitcoin compared to retail investors. That’s because most institutional purchases have become unseen, experts said. Decryption.
Such transactions are configured to avoid public visibility and can either cause off-chaining or end up in a wallet that is less moving.
As a result, traditional blockchain metrics often overlook the scale and nature of institutional flows, according to Aslan Tashtanov, a blockchain engineer and an inventive contributor to Mysten Labs’ DeepBook.
“There are several reasons why on-chain data metrics don’t talk fully about institutional investors’ behaviour,” Tastenov said. Decryption.
Institution players “are likely to buy through centralized exchanges and OTC desks.” It is designed to handle large quantities without disrupting the market, he said.
As a result, the dynamic marketplace allows facility capital to move prices without triggering regular on-chain signals.
What do you say about the signal?
Spot Bitcoin retail trading activities It remains neutraldespite recent price fluctuations and a gradual upward trend over the past few weeks.
Meanwhile, the cumulative balance of Bitcoin held in known OTC addresses has dropped to a historic low, with the average minor link balance falling 18% from January to around 156,000 BTC. data From Cryptoquant.
Miners are considered to be comparable to institutions due to their significant holdings and represent cohorts that can influence market movements.
The decline in the OTC balance, especially the balance linked to miners, shows a change in how and where a large amount of Bitcoin is being moved. But it only draws half of the picture.
“Large institutional purchases don’t appear in the usual chain metrics,” said Kony Kwong, CEO and co-founder of Gaib. Decryption. “This disconnect will make demand appear weak even when capital continues to flow through vehicles within the facility,” says US ETFs and European ETPS.
By symbolizing GPUs as harvest-generating digital assets, GAIB claims to build financial infrastructure for the AI computing economy and closely monitor institutional activities.
“In a post-harving environment where new supply is limited, even modest institutional demand can move through the market,” says Kwong.
Still, April 2024 Bitcoin Harvingwhich cut miner pay in half as part of Bitcoin’s four-year issuance schedule, which didn’t immediately result in a significant price increase.
A year later, Bitcoin posted its weakest post-Herning performance in its record. As low as $75,000 In early April, Trump’s tariffs threatened market stability, causing risky assets to sway.
The low range between $40,000 and $90,000 is taking a break from the explosive rally following previous hulling. data From Kaiko Research, the market information company within the facility.
Supply and Liquidity Constraints
However, despite supply constraints, historical trends show that market responses often unfold and vary widely. For the institution, the problem is more than just timing. It is also about infrastructure.
Tashtanov claims that infrastructure gaps have been intervened by other networks, citing blockchains such as SUI I put roots on it Bitcoin’s decentralized financial sector.
sui “It plays an active role in supporting institutional access to Bitcoin’s definition strategy,” Tastanov added that Bitcoin “currently locks over 10% of the total value of SUI.”
“The biggest reason is actually practical reasons,” Tastenov said. “There is not enough liquidity on-chain to drive institutional demand.”
At the time of writing, Bitcoin According to Coingecko data, daily volumes are trading at around $106,200, close to $25.7 billion.
edit Sebastian Sinclair
