Why On-Chain Metrics Miss the Full Picture of Institutional Bitcoin Buying
2025-07-02 06:44:26
Main Idea
Bitcoin achieved its highest monthly close and strongest Q2 performance on record, with U.S. spot Bitcoin ETFs seeing significant inflows, while institutional buying activity remains largely off-chain.
Key Points
1. Bitcoin closed above $104,000 in June, marking its highest monthly close and strongest Q2 performance on record.
2. U.S. spot Bitcoin ETFs experienced a 12-day streak of inflows totaling nearly $4 billion in June.
3. Institutional Bitcoin buying often happens off-chain or in wallets that don't move much, making it less visible in traditional on-chain metrics.
4. The cumulative balance of Bitcoin held in known OTC addresses has dropped to historic lows, with miner-linked balances down 18% since January.
5. Despite muted on-chain activity, institutional demand through vehicles like ETFs can significantly impact Bitcoin's price in a post-halving environment with limited new supply.
Description
Bitcoin hit a record monthly close in June, but experts say on-chain data is missing the scale of institutional demand via ETFs and OTC desks.
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