According to CryptoQuant data, Bitcoin's apparent demand metric returned to negative territory around September 1, 2026, following a short period of improvement in August. This indicates that the supply from dormant wallets is currently exceeding new buying interest, a trend that has persisted throughout much of 2026.
Retail investors are primarily driving this trend by taking profits. Wallets holding fewer than 10 BTC have recorded a negative accumulation trend score of -0.982 since early August 2026, where -1 represents maximum distribution. Short-term holders are realizing profits at high rates during price recoveries, increasing selling pressure.
Institutional demand also remains weak. The Coinbase Premium Index, which tracks US institutional activity, has been negative for 78 consecutive days, meaning buyers on the platform are bidding below global market prices. Additionally, US spot Bitcoin ETFs have experienced significant capital outflows.
The current situation follows a prolonged period of negative demand. Through June 26, the metric remained negative for 208 consecutive days, reaching lows of approximately -273,000 BTC. While some large holders, or whales, have accumulated during market dips, their activity has not been sufficient to offset retail selling and ETF outflows.
