Bitcoin ETF purchases fail to offset declining token demand — CryptoQuant

According to CoinDesk, bitcoin opened the new week trading at around $109,000. The price is up 0.8% from last week and 4.5% higher than June levels.

Despite heavy crypto purchases by Strategy firm and steady bitcoin-backed ETF inflows, the token's price has yet to surpass its all-time high, raising questions about this divergence.

A new CryptoQuant report provides a clear explanation: institutional investors’ activity isn’t making up for the broader decline in bitcoin demand. The firm notes that total BTC accumulation has dropped by 895,000 coins over the past month.

Moreover, Strategy and ETFs are buying at a significantly slower pace than in December. Back then, funds purchased 86,000 BTC, while Strategy bought 170,000. In June, however, ETFs acquired just 40,000 tokens and the company purchased only 16,000.

CryptoQuant believes the cryptocurrency is stuck in a consolidation phase. Current demand for the asset is simply not strong enough to drive price growth.