Bitcoin price drops as institutional demand virtually disappears

Institutional demand for Bitcoin is drying up. While large players were still piling in en masse in August 2025, that demand has now dropped to virtually zero. Meanwhile, the Bitcoin price stands at $65.900, a decline of 0.6% over the past 24 hours.

Bitcoin is available at OKX and Bybit.

ETFs, Strategy and Treasury Companies Are Barely Buying

A chart from analyst Darkfost shows the combined capital flows into Bitcoin, broken down by spot ETFs, Strategy (formerly MicroStrategy) and so-called treasury companies. The picture is far from rosy. The 30-day change in Bitcoin ETF flows stands at minus $2.1 billion. It should be noted that not only institutional players use ETFs, retail investors also have access to them. Moreover, some institutions use ETFs as part of hedging strategies.

Strategy has shown virtually no new purchases for weeks, with demand at zero. The same applies to the treasury companies, which, according to the analyst, are being hit hard by the current bear market. In August 2025, when Bitcoin was still trading around $115.000, total demand from these companies amounted to about $6.6 billion. Now that Bitcoin is around $65.900, that demand has all but disappeared.

Pessimism as a Possible Buy Signal

The pattern Darkfost describes fits into a broader picture of institutional pessimism that has gripped the market for some time. Treasury companies, once seen as major buyers, are now on the sidelines. That says something about how sentiment has shifted after the decline in the Bitcoin price.

Yet the analyst points out an interesting contradiction. Precisely at the moment when demand from these parties is at a low point, historically it has often been the most logical time to take a position. Those who wait until demand picks up again typically enter only after the price has already recovered significantly. Whether this pattern holds true now remains uncertain, but it is a consideration that serious investors will not simply dismiss.