‘not Good’ For Price: Bitcoin Etf Demand Starts To Lag Newly Mined BTC

The slowdown in institutional demand may be a factor in the cooling of Bitcoin's bull run, adding further downward pressure on the BTC price.

BTC demand fell below daily mining supply for the first time in seven months.

Spot Bitcoin ETFs have seen $1.67 billion in net outflows since Oct. 11.

Bitcoin treasury firms trading below NAVs signal eroding confidence, potentially pressuring BTC prices further.

Institutional demand for Bitcoin (BTC) has dropped below the daily amount mined, raising concerns about BTC’s long-term stability, according to an analyst.

While Bitcoin mining output has remained relatively constant, demand from institutional buyers has “dropped below the daily mined supply for the first time in seven months,” according to head of Capriole Investments, Charles Edwards.

Related: Retail investors’ retreat’ to $98.5K: 5 things to know in Bitcoin this week

Edwards shared a chart illustrating key Bitcoin metrics that track three institutional activities: Bitcoin mined (red), spot ETF and similar institutional buying (light green), and BTC Digital Asset Treasury (DAT) corporate activity (orange).

The total amount of Bitcoin purchased by institutional investors is represented by the blue line.

The analysis shows a staggered decline in demand from DATs and ETFs since mid-August, with the combined demand dropping below the daily mining supply on Nov. 3. The last time this institutional demand trailed the daily amount of BTC mines was in March.

Source: CoinTelegraph