Who is selling Bitcoin? The pressure on giant whales to reduce their holdings offsets ETF buying, and the rebound in March cannot conceal the vacuum of demand

Data from data analysis platform CryptoQuant shows that despite an increase in institutional buying, demand for Bitcoin continues to be under pressure, indicating that the broader market is still selling the token. As of the end of last month, the "apparent demand" indicator, which measures the demand for Bitcoin relative to the number of newly mined Bitcoins, was negative at approximately 63,000 coins. This situation occurred against the backdrop of a strong buying period in exchange-traded funds (ETFs) and Michael Saylor's digital asset company Strategy Inc. (MSTR.US) continuing to increase its holdings of Bitcoin.
The report states: "Selling by retail investors and other market participants has exceeded new institutional buying. The continued contraction in demand since late November 2025 confirms that the overall market is still in a distribution phase." The data suggests that the market is facing a situation where new demand is offset by existing holders reducing their holdings - a dynamic that may limit gains even when institutional interest appears to be building.
Although Bitcoin barely ended its previous five consecutive months of decline in March and recorded a slight rebound of about 2.2%, the overall market rebound momentum appears to be lacking in stamina. The core crux is that large currency holders, known as "giant whales" by the market, have completely shifted from a long-term accumulation model to a radical net selling model. This huge wave of selling has directly hedged against the bullish sentiment brought about by the recent increase in holdings of spot ETFs and some companies.