Bitcoin Market Thinning Despite Institutional Demand

Multiple data sources indicate a contraction in the overall Bitcoin market, with demand decreasing by approximately 63,000 BTC monthly. This trend persists even as institutional investors are actively increasing their purchases. Large holders have distributed nearly 188,000 BTC over the last year, suggesting a significant shift in market dynamics. The combination of reduced overall demand and substantial distribution by long-term holders points to a potentially less liquid market, which could have implications for price volatility.