Key Points
- U.S. retail investors have shown a significant decrease in BTC buying activity, reflecting institutional trends.
- Despite the selling pressure, there is still bullish sentiment in the market, with significant BTC accumulation observed.
U.S. retail investors have experienced a significant decline in BTC purchasing activity as the market opened, a trend that is similarly seen in institutions.
The wider market, however, continues to show bullish tendencies with billions of dollars’ worth of BTC being bought.
Bitcoin’s Uncertain Price Action
The price action of Bitcoin [BTC] remains unclear. Over the past month, the asset has seen a 12.42% decrease and has struggled to maintain a bullish stance, with a slight increase of 0.26% in the last 24 hours.
The current market sentiment suggests that BTC could experience a significant price rally, with notable buying activity observed from retail investors and large-scale investors, known as whales. However, this potential rally is threatened by low liquidity levels.
U.S. Investors and Institutions Panic-Sell BTC
There has been a noticeable decline in interest from U.S. retail and institutional investors over the past 24 hours, according to data.
The Coinbase Premium Index (CPI), which monitors U.S. retail investor activity on Coinbase in comparison to other exchanges, indicates that selling pressure has increased as the CPI has fallen below zero.
This change follows a bullish sentiment on February 17th, when the crypto market experienced a strong price surge. However, ETF activity suggests a more bearish outlook.
In February, spot BTC ETFs saw an inflow of $70.60 million, indicating buying activity. However, on the 18th, a major outflow of $129.10 million was recorded, meaning more BTC was withdrawn from these institutions.
This trend is a continuation of the market outflows that occurred from the 10th to the 13th of February, as institutional investors continued to sell their BTC holdings.
Bullish Sentiment Remains
Despite recent selling pressure, some bullish sentiment still exists. According to CryptoQuant, an address associated with over-the-counter (OTC) trades for long-term holding has acquired a significant amount of BTC.
At the time of analysis, over 28,000 BTC—worth more than $2.6 billion—had been purchased by these addresses. This could potentially lead to a supply squeeze, reducing the amount of BTC in circulation.
A closer examination of the spot market reveals similar buying trends. In the past week alone, $314.70 million more BTC was bought than sold.
Asset netflow data shows consistent BTC accumulation since January 2025, further supporting a bullish outlook.
Low Liquidity Levels Threaten Upward Move
According to Binance’s liquidation heatmap on the monthly timeframe, a significant liquidity level is positioned at $92,930.28, where $136.1 million worth of BTC buy orders have been placed.
Typically, liquidation levels act as magnets that pull the price toward them. If this holds for BTC, it could drop to this level before quickly rebounding.
For now, market sentiment remains mixed, and further data and on-chain activity will provide clarity on BTC’s next move.
