Bitcoin (BTC) experienced a surprising 3% drop this Tuesday. The price retreated from $116,000 down to $112,250. This move puzzled investors, as it occurred while institutional demand for Bitcoin weakens, according to new on-chain reports from the platform Glassnode.
Bitcoin’s retreat was notably contrary to traditional market sentiment. It happened just as the S&P 500 reached an all-time high, rising 1.23%. At the same time, the Nasdaq 100 also posted gains of 0.6%. These movements in stocks were driven by positive news regarding US-China trade talks. However, the crypto market did not follow the trend. Ethereum (ETH) suffered an even steeper 4% decline during the same period, according to CoinGecko data.
The crypto market’s weakness highlights a clear decoupling from traditional risk assets. Analysts point out that the primary cause is lukewarm buying from large players. Although US Spot Bitcoin ETFs saw net inflows of approximately $200 million, this figure is considered subdued. It is not enough to fuel a new bullish leg. The global economy appeared optimistic, but Bitcoin showed internal weakness.
Are Institutional Investors Losing Interest in BTC?
The on-chain analysis platform Glassnode provided crucial data on this phenomenon. They noted that the price recovery from $107,000 coincided with positive ETF flows. However, the current problem is the stagnation of this capital. Glassnode highlighted that current inflows “remain below 1,000 BTC per day.” This figure is significantly lower than the 2,500 BTC daily seen at the start of major rallies this cycle.
The situation suggests that while underlying support exists, the velocity of institutional capital is insufficient. Demand is recovering, but not with the intensity needed to break the $116,000 resistance. If institutional demand for Bitcoin weakens sustainedly, the market could remain susceptible to further pullbacks. Investors will be closely watching whether ETF flows can regain lost momentum in the coming sessions.
