Bitcoin news: selling pressure is increasing as institutional demand weakens. Glassnode co-founder Rafael Schultze-Kraft says Bitcoin ETFs sold 71,600 BTC over the past month while treasury buying slowed, creating a growing supply overhang that could weigh on any BTC recovery.
For most of the current cycle, spot Bitcoin ETFs and corporate treasury buyers were viewed as major catalysts capable of absorbing new supply and pushing prices higher. However, fresh market data suggests that institutions may now be contributing to market pressure, adding to ongoing concerns about Bitcoin selling.
According to Glassnode co-founder Rafael Schultze-Kraft, institutional demand is currently failing to absorb new Bitcoin supply, making any near-term recovery substantially harder.
In a recent post on X, Schultze-Kraft pointed out that institutions have shifted from absorbing Bitcoin supply to adding sell-side pressure.
Over the past month alone, spot Bitcoin ETFs collectively sold approximately 71,600 BTC.
At the same time, Digital Asset Treasuries (DATs) accumulated only around 7,500 BTC.
Once newly mined Bitcoin entering circulation is factored in, combined institutional flows become even more concerning. According to Rafael, the net balance currently stands at negative 77,000 BTC.
"Institutional demand isn't absorbing new BTC supply — it's adding to the overhang," Schultze-Kraft said.
He added that until these flows turn positive again, any Bitcoin rally will continue fighting against excess supply.
The latest ETF data shows growing weakness in institutional demand.
According to SoSoValue, spot Bitcoin ETFs lost roughly $1.61 billion across June 24, June 25, and June 26. As a result, cumulative net inflows have fallen to approximately $51.61 billion.
The broader trend has also deteriorated. Since early May, strong inflow days have become increasingly rare. The largest daily inflow recorded after May 5 was only $131.3 million on May 14.
Meanwhile, outflows have repeatedly surged into the hundreds of millions. One of the biggest examples came on May 27, when ETFs collectively recorded $733.4 million in outflows.
The pressure was also visible at the fund level. The iShares Bitcoin Trust reportedly suffered a massive $527.84 million outflow in a single day, raising fresh questions about whether institutional appetite for Bitcoin remains as strong as it was earlier this year.
Over a recent nine-day period, total ETF outflows reached nearly $2.8 billion.
Corporate Bitcoin buyers continue accumulating, but not fast enough to offset ETF selling.
Data from BitcoinTreasuries shows that public companies added a net 43,500 BTC during May. Much of that buying came from Strategy, which purchased 25,404 BTC.
However, Schultze-Kraft’s analysis specifically focuses on Digital Asset Treasuries, where recent buying activity has slowed considerably.
As treasury accumulation weakens, ETF outflows are increasingly dictating overall institutional flows.
Institutional weakness is not Bitcoin's only challenge. Current market data shows that roughly 6.6 million BTC, almost one-third of all circulating Bitcoin, is currently being held at a cost basis above today's market price.
This means millions of investors remain underwater on their positions.
Analysts warn that this large supply overhang could increase volatility. If Bitcoin begins recovering, many holders may decide to sell as prices approach their breakeven levels, creating additional resistance.
Bitcoin has historically depended heavily on supply dynamics and institutional participation.
While long-term adoption trends remain intact, current market conditions paint a more complicated picture. ETF selling, slowing treasury accumulation, and a massive supply overhang are all weighing on price action.
As of press time, Bitcoin was trading near $59,254, down more than 8% over the past seven days.
For now, analysts believe that sustained upside may remain difficult until institutional flows turn positive again and demand starts absorbing supply rather than adding to it.
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