Analysis: Bitcoin demand is contracting internally, with multiple indicators showing that both retail and large investors are clearly offloading.

BlockBeats message, April 4, a CryptoQuant analysis report shows that the current crypto market sentiment and capital flows are out of sync: the Fear & Greed Index is in an extreme fear range (8–14), but ETF net inflows over the past three months have exceeded $1 billion; the Coinbase Premium Index has remained negative, reflecting that participation by U.S. institutions is still limited. Geopolitical volatility (Iran conflict) is causing prices to repeatedly churn and swing; market strategy is leaning toward a wait-and-see stance, with overall demand fading slowly rather than panic selling.

Despite a drop of about 47% from the historical high of $126,000 in October 2025, far below the 85%+ crashes of 2013 and 2017, analyst Zack Wainwright points out that this is a sign of the Bitcoin market gradually maturing, with volatility steadily compressing.

Potential catalysts include: Morgan Stanley being approved for a low-fee Bitcoin ETF, which will provide an entry point for the $6.2 trillion in assets managed by 16k financial advisers, and Strategy STRC preferred-share products continuing to buy 44,000 BTC per month, which could provide a steady bid for the market. Short-term technical indicators show that if the Iran conflict eases, Bitcoin could rebound to $71,500–81,200.

Based on the combined indicators, CryptoQuant’s conclusion is: internal demand in the Bitcoin market is contracting, and current price support depends on institutional ETFs, Strategy, and new channels continuing to absorb selling pressure from retail traders and large holders. (CoinDesk)