Bitcoin Loses 0.8M Short-Term Holders, Demand Drops –2M BTC

Key Points:

• Short-term Bitcoin holders shed 0.8M BTC since May 27, signaling reduced new investor participation.
• Demand momentum hits –2M BTC, the worst on record, as growth in spot demand slows sharply.
• Whale and ETF buying drops; daily ETF purchases fall to 3.3K BTC from April’s 9.7K peak.

Bitcoin’s recent price consolidation comes amid a sharp decline in short-term holder activity and weakening demand, according to CryptoQuant’s latest on-chain data. The number of Bitcoins held by short-term holders (STH) has fallen by 0.8 million since May 27, down from 5.3 million BTC to 4.5 million BTC today. The drop in short-term holder supply is one of the steepest in recent months.

At the same time, the demand momentum metric has declined to –2 million BTC, marking the most negative reading on record. CryptoQuant analysts note that sustained price rallies often require increased demand from new entrants, which appears to be lacking at the current stage.

Bitcoin Price Holds Steady Despite Demand Weakness

The price of Bitcoin (BTC) was $106,419 at the time of writing, reflecting a 1.41% rise in the past 24 hours and a 0.88% increase over the last week. While price action remains stable, the underlying on-chain metrics suggest a slowdown in new capital inflow.

Bitcoin spot demand has continued to grow, but its pace has slowed significantly. Over the last 30 days, apparent demand grew by 118,000 BTC, down from a peak of 228,000 BTC on May 27. Moreover, current demand growth remains below the 30-day moving average, typically indicating softening demand.

CryptoQuant explained, 

“Demand from new Bitcoin entrants has weakened, and overall demand momentum has turned sharply negative.”

Institutional Buying Slows as Whales and ETFs Step Back

On-chain data also shows a slowdown in large-scale purchases. Whale balances are increasing at a month-over-month rate of 1.7%, compared to 3.9% in late May. U.S.-based Bitcoin ETFs have similarly reduced their activity, buying just 3,300 BTC daily compared to 9,700 BTC at their April peak.

These entities play a key role in driving demand. Their reduced activity may help explain the stalled price movement. Analysts often associate bull runs with increased institutional accumulation, but that trend has paused for now.

Despite the slowdown in demand, realized profits remain in a neutral range. According to CryptoQuant, seven-day moving average (7DMA) profits remain below $1 billion. This level is similar to the end of the October 2024 correction and well below January 2025 levels.

Meanwhile, this balance suggests the market is not under immediate selling pressure, even as demand momentum slows. Apparent demand, which compares new supply to long-term inactive supply, continues to decline but remains strong enough to absorb sell pressure.