Institutional Bitcoin Buying Drops Below Mining Supply
Net institutional Bitcoin purchases have fallen below the daily mining supply for the first time in seven months, signaling a market shift.Summary
Net Bitcoin purchases by institutional investors, including spot ETFs and corporate treasury activity, have dropped below the daily issuance rate from mining for the first time in seven months, according to Charles Edwards of Capriole Investments. This metric was previously a key bullish indicator for Edwards. The decline was staggered: corporate buying diminished first around August 14, and subsequent spot ETF inflows initially compensated. However, ETF buying also contracted sharply after the October 10 market crash, leading to the current situation where overall institutional demand is insufficient to absorb new supply. Edwards cautioned that while the trend could reverse, it currently indicates structural weakness, noting that many treasury companies are holding large amounts with waning institutional interest. Separately, on-chain data shows increased selling pressure from individual whale investors, with one major whale depositing $1.48 billion worth of BTC to exchanges recently.
(Source：BeInCrypto)