Report: Bitcoin Institutional Buyers Yet to Stage Comeback, Market Still in Consolidation Phase

BlockBeats News, March 17th, Bitfinex released a new report stating that Bitcoin has been continuously declining since hitting a historical high of $109,590 on January 20th, with the lowest point last week reaching $77,041, a 29.7% pullback, marking the second deepest correction in this bull market cycle.

While historically bull markets often see a 30% retracement before resuming the upward trend, this cycle had previously experienced shallower declines due to institutional adoption and ETF-driven demand. Short-term holders continue to face unrealized losses, exacerbating selling pressure. These investors, especially those who bought in the past 7 to 30 days, are often the most likely to capitulate.

Historically, when fresh capital inflows slow down and the cost basis trend shifts, it indicates a weakening demand environment. With Bitcoin struggling to hold key levels, this trend is becoming more apparent. Without new buyers stepping in, Bitcoin may face a prolonged consolidation period or even further downside as weak hands continue to exit.

A key factor to watch is whether long-term holders or institutional demand will reemerge at these lower levels. If deep-pocketed investors start absorbing the supply, it could signal a shift to an accumulation phase, stabilizing price action and reversing market sentiment.