Although BTC has recently stabilized around $60,000, the prospects for a meaningful recovery remain bleak because institutional demand falls far short of absorbing supply.
The latest chart from Glassnode shows that bitcoin exchange-traded funds (ETFs) have sold 71,600 BTC, worth over $4 billion, this month, the largest redemption on record. Meanwhile, corporate treasuries, or digital asset treasury firms, have only bought 7,500 BTC. Add to that the fresh coins mined every day and the net figure comes to around -77,000 BTC ($4.4 billion).
In other words, more supply is hitting the market than the biggest players are absorbing, creating what analysts call a “supply overhang.” Big money cars actually increase sales pressure.
Against this background, Strategy (MSTR), the largest digital bitcoin company, announced a BTC monetization plan on Monday that authorizes up to $1.25 billion in potential bitcoin sales, mainly to build a $2.55 billion US dollar reserve to cover preferred dividends and interest expenses.
These developments suggest that any price increase is likely to be short-lived unless these flows turn positive and institutional demand returns. That’s a key signal for traders looking at whether the recovery has real fuel or is just temporary.
