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Bitcoin is testing whether large holders can offset weakening institutional demand after U.S. spot Bitcoin exchange-traded funds recorded heavy redemptions. Monthly Bitcoin ETF flows have turned negative by about $4.06 billion, while total ETF assets have fallen to roughly $72.82 billion.
Bitcoin briefly slipped below $60,000 before returning toward that level. Whale activity rose during the decline, but market data leaves one question open: “Can large buyers replace the demand lost from ETFs?”
U.S. spot Bitcoin and Ethereum ETFs posted a seventh straight day of net outflows. Bitcoin funds lost about $445 million in one session, while Ethereum products recorded $12.85 million in withdrawals.
Bitcoin ETFs also lost more than $1.79 billion last week, marking their largest weekly outflow on record, based on the supplied market data. Selling spread across several major funds as investors reduced crypto exposure.
ETF demand previously absorbed Bitcoin supply during market corrections. With that support fading, the market now relies more on whales, long-term holders, and retail buyers. Renewed institutional inflows could provide stronger price support, but current flows show that demand has not recovered.
Meanwhile, Bitcoin’s Coinbase Premium has stayed weak, while apparent demand has remained negative for 208 straight days. The measure recently fell to about negative 273,000 BTC, showing that new buying has struggled to absorb available supply.
Large Bitcoin holders became more active as the price tested levels below $60,000. The network recorded 6,920 transactions worth more than $100,000 and 1,438 transfers above $1 million. That marked the second-largest whale activity spike in two months.
The increase suggests that some large holders viewed the decline as a possible accumulation window. Still, transaction volume does not prove that every whale transfer involved buying. Some movements may involve sales, exchange deposits, or transfers between wallets.
Bitcoin later returned toward $60,000, although momentum remained weak. The relative strength index stayed near oversold levels, while the MACD showed that buyers had not regained control. Therefore, the rebound remains “unconfirmed” without stronger spot demand and better ETF flows.
Additionally, traders are watching $57,000 as a possible liquidation zone. A break below that level could expose Bitcoin to $54,000, near a key realized price level. That move could test whether whales will absorb more selling.
Long-term holders are also reacting to the decline. The monthly average for Long-Term Holder SOPR fell from 1.03 to 0.8, showing that some older investors sold Bitcoin at a loss. The supplied data points to losses of about 13% over the past month.
The yearly average also declined from 2.06 to 1.46. This shows that realized profits among long-term holders have narrowed as Bitcoin trades well below its recent high near $82,803.
Selling by older holders can add pressure in the short term. Nevertheless, the data suggest that weaker sellers are reducing exposure near current levels. That process “may reduce future selling,” but it does not confirm an immediate price reversal.
Bitcoin now faces two competing forces. ETF redemptions and weak spot demand weigh on the market, while whale activity offers support near $60,000. A sustained recovery still requires stronger buying across ETFs, exchanges, and the wider spot market.
Also Read: Bitcoin and Nasdaq Outlook: Are Risk Assets Headed Lower?
