Institutional Bulls Clash with Retail Skeptics: Bitcoin’s 2025 Demand Split Revealed

Wall Street and hedge funds doubled down on Bitcoin while Main Street tapped out—classic ’buy high, sell low’ behavior strikes again.

Corporate treasuries and ETFs hoovered up supply as retail investors panic-sold into strength. Who’s laughing now?

Another quarter, another reminder that the smart money eats while the herd gets slaughtered. Just don’t call it financial advice.

GsfScqfWsAAVo1e   The data shows a divergence between institutional accumulation and retail distribution. Public Companies and Funds Lead Institutional Accumulation Specifically, public companies have emerged as the single largest buyers, increasing their net bitcoin holdings by 218,000 BTC. This rise suggests strong adoption of Bitcoin as part of corporate treasury strategies or strategic reserves. Following closely, funds and exchange-traded products (ETPs) accumulated 199,000 BTC, pointing to substantial inflows into regulated investment vehicles. Collectively, these two institutional segments accounted for the entire 417,000 BTC net gain among large-scale investors, confirming their role as the primary market drivers so far in 2025. Meanwhile, DeFi platforms also contributed positively with a net increase of 81,000 BTC. Governments, though more modest in comparison, added 14,000 BTC, which may stem from seizures, experimental holdings, or early reserve strategies. Retail Investors and Private Firms Contribute to Selling Pressure In contrast, individual investors have become the largest net sellers, reducing their holdings by 158,000 BTC. This activity may reflect profit-taking behavior or shifting sentiment amid market volatility. Alongside this trend, private companies offloaded 123,000 BTC, likely due to capital reallocation or liquidity needs. In addition, 69,000 BTC entered circulation as newly mined supply, representing typical post-halving miner behavior. Notably, mining pools showed minimal net change, with just a 1,000 BTC increase, implying that most newly mined coins are either held or sold quickly. This aligns with historical post-halving patterns. Long-Term Holders Maintain Accumulation Despite Price Levels To support this institutional accumulation narrative, analysts reported a significant rise in long-term Bitcoin holder (LTH) supply from March to late May 2025. Between March 3 and May 25, LTH supply increased from 14.35 million BTC to 15.73 million BTC, marking a net accumulation of over 1.39 million BTC within 12 weeks. This accumulation has diverged from previous bull market cycles in 2013, 2017, and 2021, where LTH supply declined during price rallies. Even with brief dips in May 2024 and March 2025, the broader trend has remained upward. Analysts noted that experienced participants appear unwilling to sell at current prices, suggesting reduced availability for new entrants moving forward. Meanwhile, Michael Saylor, executive chairman of Strategy, reiterated institutional confidence in Bitcoin. Speaking at the 2025 Bitcoin Conference in Las Vegas, Saylor described the asset as a long-term reserve for balance sheets. He emphasized that while most products fail over five years, Bitcoin has shown a high probability of success over similar timeframes.