Bitcoin's net institutional buying metric has flipped negative, signaling that institutions are now net sellers of the asset. The shift comes after US spot Bitcoin ETFs recorded net outflows in the wake of April's Consumer Price Index report, which showed inflation ticking up to 3.8% — its highest level since May 2023. Charles Edwards, founder of Capriole Investments, put it bluntly: institutions are 'dumping on us again.'
ETF outflows after April CPI
The CPI print on May 12 rattled markets. A 3.8% reading was hotter than expected, and the reaction hit crypto quickly. US spot Bitcoin ETFs, which had been a primary channel for institutional inflows, swung to net outflows in the days that followed. That capital rotation is the main driver behind the negative institutional demand metric, according to the data. The timing isn't great — Bitcoin had been grinding higher for weeks off the back of those same ETF flows.
7.75 million Bitcoin underwater
Right now, roughly 7.75 million Bitcoin tokens are held at a net unrealized loss on the network. That's a lot of supply sitting in the red. Glassnode notes that this kind of supply overhang is a structural feature of bear markets. It doesn't resolve quickly — weaker hands need to capitulate before the pressure lifts. The question is whether that process accelerates or drags out.
Price stuck at $77,300
Bitcoin's price has gone mostly sideways, hovering around $77,300. That's well off the highs, but not in freefall either. The market is caught between selling pressure from institutional holders and the stubborn hope that inflation data will soften. For now, the sellers have the upper hand. The next real test will come when enough underwater holders decide they can't wait any longer — or when a new catalyst shifts the balance.
