Institutional Demand Overtakes BTC Mining Output

For the first time in six weeks, institutional bitcoin purchases have exceeded the supply from mining. This subtle reversal, revealed by CryptoQuant data, occurs in a market in consolidation phase, marked by the retreat of retail investors.

An institutional accumulation dynamic that reverses the trend

The market experienced a notable inflection this week in bitcoin flows: institutions bought more BTC than was produced by mining companies.

This phenomenon was observed for the first time in six weeks, as stated by Ki Young Ju, CEO of the on-chain analysis platform CryptoQuant. In a message shared on social media, he specified that the “adjusted netflow for entities” indicator clearly showed a reversal of trend: “institutional accumulation is again higher than daily mining supply.”

On-chain data published by CryptoQuant confirm that buying pressure from institutional players has momentarily exceeded the natural network supply. This shift is based on several factual elements :

• The daily issuance of bitcoin remains stable at around 900 BTC per day, according to the protocol ;

• Institutional purchases have passed this threshold, signaling a net liquidity absorption on spot markets ;

• The phenomenon had not been observed for six weeks, marking a break from a previous trend of under-absorption.

This type of signal is usually closely monitored by analysts, as it can precede a supply compression phase if demand remains supported. For now, these flows mainly concern OTC channels and institutional products, far from the speculative stir of leveraged markets.

An isolated signal or the prelude to a sustainable bitcoin accumulation phase ?

Beyond a simple reading of flows, this renewed accumulation fits into a global context. CryptoQuant data indicate it is the entities classified as “institutional” that are behind this bullish imbalance between demand and supply.

According to Ki Young Ju, these movements correlate with a “long-term stealth accumulation strategy,” without frenzied activity on derivatives markets, but with significant volumes on spot markets. This observation contrasts with the usual volatility of bull market phases fueled by retail investors.

If this dynamic were to repeat in the coming weeks, it could reinforce the relative scarcity of bitcoin in liquid markets. As it stands, this signal does not predict an immediate rise, but constitutes a marker of growing interest for bitcoin exposure in the medium/long term.

If demand continues to exceed supply, the market could enter a new accumulation phase. Meanwhile, shares of Bitcoin mining companies decline, reflecting a loss of investor confidence due to the sector’s declining profitability.