BTC News: Institutions Are Buying Bitcoin Like Never Before — So Why Is the BTC Price Dropping?

Investors worldwide are enthusiastic about Bitcoin, but corporate purchasers especially demonstrate this interest. The expanding interest in Bitcoin fails to boost its market value as prices decrease. A new peak in public company Bitcoin acquisition occurred during Q1 of 2025, although cryptocurrency prices have remained decreasing. High levels of corporate Bitcoin buying generate market demand but fail to drive price increases within the Bitcoin market.

Corporate Bitcoin Buying Hits Record Levels

The market witnessed an unexpected rise in corporate Bitcoin buying at the beginning of 2025. The growing confidence of public enterprises in Bitcoin’s future worth prompted them to buy 91,781 Bitcoin for their balance sheets from January through March. The company purchase surge mainly came from MicroStrategy buying 81,785 BTC for $8 billion and Tether spending 8,888 BTC. Two additional companies, Metaplanet and Semler Scientific, made significant Bitcoin acquisitions for their businesses.

JUST IN: Stablecoin issuer Tether buys 8,888 Bitcoin worth $735 million as per on-chain data.

They now hold over 100,000 BTC pic.twitter.com/8lb8G2WOZ5

— Bitcoin Magazine (@BitcoinMagazine) April 1, 2025

The extended development of corporate investments in Bitcoin has not produced positive changes in the Bitcoin price value. At press time, Bitcoin price has dropped by more than 8% since the beginning of the month while experiencing a 20% decline from its January 2025 peak of $109,000. The price remains in decline even though business entities express optimism.

Selling Pressure from Long-Term Holders and Bitcoin ETFs

Bitcoin price has fallen due to the sustained reduction in supply caused by long-term holder asset sales. According to CryptoQuant, Bitcoin long-term holders conducted about 178,000 BTC transactions in Q1 of 2025, dramatically increasing the amount of crypto sold in the market. The market experienced supply-demand inequality when long-term investors withdrew their Bitcoin positions while corporate entities increased their shares.

Image 1- Bitcoin ETF- Drawdown from ATH, published on CryptoQuant on April 3, 2025

The Bitcoin ETFs experienced massive cash withdrawals of about $4.8 billion during this period. The high outflow activity allegedly intensified the Bitcoin selloff even when businesses were stocking up on the king coin. The combination of corporate buying pressure and long-term selling pressures has destabilized Bitcoin price, leading to price volatility in the market.

Key Support Levels and Future Outlook

Bitcoin maintains an optimistic position for medium-long-term performance despite facing immediate hurdles. According to BorisVest from CryptoQuant, Bitcoin approaches an essential support region, reaching between $65,000 and $71,000. The Bitcoin support level originates from the Active Realized Price and True Market Mean Price data. New demand from institutional investors and long-term holders will likely enter Bitcoin when its price hits this support zone, as they view decreased values as accumulation potential.

Image 2- Bitcoin Market Dynamics and Price, published on CryptoQuant on April 3, 2025

The Bitcoin support levels between $65,000 and $71,000 may become an excellent platform that propels Bitcoin toward future price growth, provided institutional withdrawals and ETF-related sales decrease. The market fundamentals supporting Bitcoin remain solid because some traders exit positions and others strategically wait to invest.

Conclusion: Bitcoin’s Future Amid Corporate Buying and Selling Pressure

Corporate entities bought Bitcoin in its most considerable amount, but it did not stop Bitcoin’s price from dropping. Significant market pressure observed by Bitcoin stems from long-term investors reducing their holdings, and Bitcoin ETF withdrawals are driving the price downward. The price will recover if Bitcoin support levels remain intact, coupled with increased trading volume. Bitcoin retains its position due to institutional and corporate faith, which will preserve its role within the financial sector.

The Bitcoin market involves numerous competing variables that affect its movements. The ongoing corporate purchasing activities could drive Bitcoin prices upward if long-term holders decide to hold onto their assets during the next several months despite current market selling conditions.

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