Cryptocurrency analyst Ali Martinez spotlighted a prolonged lull in institutional buying pressure for Bitcoin as the apex cryptocurrency hit a 20-month low on Wednesday.
Institutional Demand Dries Up
Martinez pointed to the 46-day negative streak in the Coinbase Premium Index, a CryptoQuant metric that measures the price gap of Bitcoin between Coinbase and offshore exchanges. It is a widely used barometer for U.S. institutional demand and overall market sentiment.
“A negative premium means $BTC is trading cheaper on Coinbase, suggesting that U.S. institutional buying pressure has dried up,” the analyst stated.
Martinez also highlighted the “cooling period” in spot exchange-traded fund flows. The Bitcoin ETFs have experienced six consecutive weeks of net outflows, according to data from SoSo Value, with $2.92 billion in redemptions this month alone.
“American smart money appears to be sitting on the sidelines, waiting for macroeconomic clarity before re-entering the accumulation phase,” Martinez added.
Is Bitcoin Headed Below $30,000?
Bitcoin on Wednesday—its first time since October 24—as the ongoing sell-off pushed the leading cryptocurrency more than 51% below its record high of $126,198.
The odds of Bitcoin falling below $30,000 in 2026 stood at 14% on Polymarket, while the chances of the asset sliding below $50,000 rose to 62%.
Does Crypto Need A New Narrative?
Bitcoin’s downfall has had a cascading effect on the broader market. Market commentator Kobeissi Letter noted how the cryptocurrency market capitalization has collapsed by more than 50% in just 8 months.
“Crypto markets have erased an average of -$8.8 billion per day for 261 days straight,” Kobeissi Letter said. “Crypto is in desperate need of a new narrative.”
Price Action: At the time of writing, $BTC was exchanging hands at $61,237.57, up 3.42% in the last 24 hours, according to data from Benzinga Pro.
Photo Courtesy: Quality Stock Arts on Shutterstock.com
