Though BTC has recently stabilized around $60,000, the prospects for a meaningful recovery remain bleak because institutional demand is falling significantly short of soaking up supply.
The latest chart by Glassnode shows that bitcoin exchange-traded funds (ETFs) have sold off 71,600 BTC, worth over $4 billion, this month, the largest redemption on record. Meanwhile, corporate treasuries, or digital asset treasury firms, have snapped up just 7,500 BTC. Add to that the fresh coins mined each 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 vehicles are actually adding to the selling pressure.
Against this backdrop, Strategy (MSTR), the largest bitcoin digital asset company, announced a BTC monetization plan on Monday, authorizing up to $1.25 billion in potential bitcoin sales, mainly to build a $2.55 billion U.S. dollar reserve to cover preferred dividends and interest expenses.
These developments suggest that any price bounce is likely to be short-lived, unless those flows flip positive and institutional demand returns. It’s a key signal for traders watching whether the recovery has real fuel or is just temporary.