Net demand for BTC slowing, but retail investors not giving up
Despite the recent short-term market correction, Bitcoin price still remains strong. According to data from IntoTheBlock, over 93% of BTC holders are In the Money.
In the meantime, Bitcoin dominance has surged 64%, according to data from CoinMarketCap.
Bitcoin dominance is a metric used to measure the relative market share or dominance of Bitcoin in the overall cryptocurrency sector. It represents the percentage of Bitcoin’s total market capitalization compared to the total market capitalization of all cryptocurrencies combined.
A rise in dominance indicates that Bitcoin is either gaining in value or losing less than altcoins, reflecting a preference for what is perceived as a safer investment.
Overall demand for Bitcoin has contracted significantly, with a decline of approximately 895,000 BTC over the past 30 days, according to CryptoQuant data. This drop has effectively offset the bullish price impact typically driven by institutional buying.
Despite continued headline purchases, the net growth in demand is slowing, which in turn is capping Bitcoin’s upward momentum. Instead of fueling a breakout, this stagnation is keeping the asset locked in a consolidation phase.
While the S&P 500 and Nasdaq Composite both closed at record highs on Friday, Bitcoin has failed to mirror the rally. Despite a 15% gain over the first half of 2025, these returns fall short of the explosive growth crypto investors have come to expect in recent years.
A key factor behind the muted action may be waning retail interest. Much of the current price movement appears to be driven by large holders, whales, such as Strategy (formerly MicroStrategy), which continues to expand its Bitcoin treasury.
As of now, Bitcoin is traded at $108,081.
From the midterm point of view, the weekly bar is about to close in the neutral zone. If the picture remains the same, sideways trading in the narrow range of $107,000-$110,000 is the more likely scenario.
