Bitcoin demand declines as retail and institutional outflows increase

Huoxing Finance reports that, on April 4, a CryptoQuant analysis revealed a disconnect between current crypto market sentiment and fund flows: the Fear & Greed Index is in the "extreme fear" range (8–14), yet ETFs recorded over $1 billion in net inflows in March; the Coinbase Premium Index remains negative, indicating limited U.S. institutional participation. Geopolitical volatility (Iran conflict) has caused repeated price fluctuations, leading market participants to adopt a wait-and-see stance, with overall demand gradually declining rather than through panic selling. Although Bitcoin has dropped approximately 47% from its all-time high of $126,000 in October 2025—far less severe than the 85%+ crashes seen in 2013 and 2017—analyst Zack Wainwright notes this reflects the maturation of the Bitcoin market, with volatility gradually compressing. Potential catalysts include Morgan Stanley’s approval of a low-fee Bitcoin ETF, which could provide access for $6.2 trillion in assets under management by its 16,000 financial advisors, and the continued monthly purchase of 44,000 BTC by Strategy STRC’s preferred stock product, potentially offering stable buying pressure. Short-term technical indicators suggest that if the Iran conflict eases, Bitcoin could rebound to $71,500–$81,200. Synthesizing these indicators, CryptoQuant concludes: internal demand in the Bitcoin market is contracting, and current price support relies on sustained absorption of selling pressure from retail investors and large holders via institutional ETFs, Strategy, and new distribution channels. (CoinDesk)