Institutional Bitcoin Buying Drops Below Mining Supply
Net purchases of Bitcoin by institutional investors fell below the daily issuance rate (mining supply) for the first time in seven months. According to one crypto investment analyst, this indicates an alarming shift in market dynamics.
On Monday, Charles Edwards, president of Capriole Investments, shared striking data from his report. x accountto count. Expressing immediate concern, Edwards said, “I’m not going to lie, this has been the main metric that has kept me bullish in recent months when every other asset has outperformed Bitcoin. It’s not good.”
Edwards presented a chart showing the price of Bitcoin along with key institutional buying/selling pressure metrics. These metrics track three types of institutional activity: miners (red), spot ETF and similar institutional purchasing (light green), and BTC Digital Asset Treasury (DAT) institutional activity (orange).
The analysis shows a surprising decline in demand. BTC DAT institutional buying was the first to decrease significantly since August 14. Initially, inflow from spot ETFs offset this diminishing institutional pressure, keeping overall institutional demand afloat.
But, Spot ETF purchases also began to contract sharply following the market crash on October 10. The current scenario shows that: The extensive net institutional buying, combining all major institutional flows, has now fallen below the daily supply of newly mined Bitcoin.
The histogram at the bottom of the Edwards chart, which tracks institutional pressure (green for buying, red for selling), transitions from green to red.
Pointing out that this short-term trend does not determine the long-term direction, Edwards underlined the structural weakness. “The trend could reverse tomorrow, next week or in 2 years. But right now, we have 188 treasury companies carrying heavy bags with no business model and institutional buyers who are much less interested than before,” he said.
Separately, on-chain data platform Lookonchain reported increased selling activity among retail whale investors outside of institutional flows. In a post published on Monday, the firm noted that a major whale, “BitcoinOG (1011short),” had deposited approximately 13,000 BTC ($1.48 billion) since October 1 on exchanges such as Kraken, Binance, Coinbase, and Hyperliquid.
Additionally, it has been confirmed that prominent Bitcoin whale ‘Owen Gunden’ transferred 3,265 BTC ($364.5 million) to the Kraken exchange after October 21. Large transfers to centralized exchanges often occur before major liquidation events, but final confirmation of cash outflows is pending.
Read original story Institutional Bitcoin Buying Falls Below Mining Supply by Paul Kim beincrypto.com
