The cryptocurrency market is currently experiencing a major redistribution phase. On-chain data shows that corporations, spot Bitcoin ETFs, and other institutional investors have removed substantial amounts of Bitcoin from circulation over the past few years. Yet BTC has failed to deliver the strong price appreciation many investors expected. This divergence has raised fresh questions about the balance between supply and demand, while key cost-basis metrics suggest the market is approaching a critical point.
Institutional Demand Faces Heavy Selling Pressure
According to CryptoQuant data, Bitcoin’s realized price, which represents the average acquisition cost of all circulating coins, currently stands at around $53,800. Historically, bear markets have often ended when Bitcoin traded below this level. With BTC changing hands near $63,800, the narrowing gap between market price and realized price indicates growing market sensitivity and shrinking profit margins for investors.
Since January 2023, MicroStrategy alone has accumulated roughly 711,000 BTC, while spot Bitcoin ETFs and other institutional participants have purchased a combined 1.24 million BTC since March 2024. That figure exceeds the estimated 1 million BTC believed to be held by Bitcoin creator Satoshi Nakamoto. Under normal conditions, such demand would be expected to push prices significantly higher. Instead, Bitcoin has returned to levels last seen in March, suggesting that an exceptionally large transfer of coins is taking place and that institutional demand has not yet fully overcome the market’s persistent selling pressure.
