Bitcoin demand hits record low as short-term holders dump

Is fresh interest in Bitcoin fading? A sharp drop in short-term holders and record-low demand momentum suggest that it is.

According to data from on-chain analytics firm CryptoQuant, wallets associated with short-term Bitcoin holders have seen a sharp decline since late May. As of June 19, this group of investors now controls only around 4.5 million BTC, down from 5.3 million on May 27. 

The numbers mark a decline of 800,000 BTC, or roughly 15.1%, in less than a month. Short-term holders (STH) are typically investors who bought Bitcoin within the past few weeks or months. In bullish market cycles, this group tends to expand as new entrants buy Bitcoin from long-term holders, fueling price appreciation. 

A shrinking STH balance, on the other hand, often signals that fewer new buyers are entering the market, and that those who did recently may be selling, either to take profits or limit losses.

CryptoQuant says this is part of a wider slowdown in interest. Demand momentum has plunged by 2 million BTC, the weakest level ever recorded. While spot buying is still happening, it’s also at a much slower pace. Over the past 30 days, Bitcoin demand increased by only 118,000 BTC, down from 228,000 BTC at the end of May.

The decline isn’t limited to retail behavior, as institutional demand is also showing signs of cooling. Whales have reduced their accumulation rate to just 1.7% per month, down from 3.9% a few weeks ago. Additionally, daily purchases by the U.S. Bitcoin ETFs have dropped from 9,700 BTC per day in April to just 3,300 BTC now.

Traders in the futures market are also shifting toward caution. Many sold off their Bitcoin when it hit $110K last week to take profits. Now, more traders are betting against the asset’s price, opening short positions as price slips toward $105K.

Despite the trend, major institutional figures have not slowed down on BTC accumulation.

BlackRock, Strategy, and others bullish on BTC

Earlier this week, BlackRock wrapped up a six-day buying streak, adding $1.4 billion worth of Bitcoin to its portfolio. The purchase boosted its holdings to 670,295 BTC, now valued at $74.8 billion.

Strategy, the largest corporate holder of Bitcoin, also recently added 10,100 BTC to its balance sheet, spending nearly $1.05 billion. The Michael Saylor-led pro-Bitcoin company now holds 592,100 BTC, accounting for around 2.98% of Bitcoin’s total supply.

Japan’s MetaPlanet has also been steadily buying Bitcoin, recently reaching the 10,000 BTC mark. Similarly, Europe-based The Blockchain Group has been growing its holdings, as rising global interest pushes more companies and governments to set new targets and grow their Bitcoin reserves.

Meanwhile, BTC has been moving sideways over the past month between $100,000 and $110,000. At press time, it hovers just over $106,000, roughly up 2.4% from this week’s lowest point.