Why Bitcoin Price Is Still Falling Despite Rising Strategy And ETF Demand: Researcher

bitcoinistPublished on 2026-03-28Last updated on 2026-03-28

Abstract

Despite significant Bitcoin purchases by institutional players like spot ETFs and Michael Saylor’s MicroStrategy (MSTR), the price of Bitcoin fell toward $65,000 on March 27. According to CryptoQuant’s Head of Research Julio Moreno, this decline is due to a contraction in overall spot BTC demand, as measured by the Demand Growth metric. While ETF inflows and MSTR’s acquisitions—now holding over 762,000 BTC—have increased, broader investor accumulation has slowed. Most corporate treasuries have reduced Bitcoin buying activity except for MicroStrategy. BTC was trading around $66,300, down over 4% in 24 hours.

On Friday, March 27th, the price of Bitcoin fell toward the $65,000 level, reflecting the growing uncertainty in the broader global financial markets. Interestingly, this decline in the flagship cryptocurrency’s value came despite the increasing market activity of select institutional investors. A prominent on-chain analytics expert has come forward with a plausible explanation for the fall in the Bitcoin price despite increasing institutional buying activity.

BTC Overall Demand Still On The Decline

In a new post on the social media platform X, CryptoQuant’s Head of Research, Julio Moreno, revealed why the price of Bitcoin is in steady decline despite significant purchases by exchange-traded funds (ETFs) and Michael Saylor-led Strategy (MSTR). According to the on-chain expert, this trend can be explained by the contracting overall spot demand for BTC.

Moreno drew this observation from the Demand Growth metric, which measures the rate of change in the accumulation of a specific cryptocurrency (Bitcoin, in this case) by investors. This apparent demand growth indicator assesses demand by comparing the freshly mined BTC to the amount of unmoved coin in over a year.

In his analysis, Moreno excluded the spot BTC ETFs and Strategy to show a divergence in their movement from the overall metric. As shown in the chart below, BTC demand from the exchange-traded funds and its largest corporate holder has been growing since the end of March, with the overall spot demand still contracting.

Source: @jjcmoreno on X

Typically, news of positive ETF inflows and fresh Strategy’s treasury acquisitions are welcomed with excitement, as they are believed to have some impact on the value of the premier cryptocurrency. According to the CryptoQuant Head of Research, it is not enough to look at the activities of the spot ETFs and Strategy when judging the current Bitcoin demand.

As CryptoQuant revealed in its latest research report, Strategy is the sole driver of the BTC treasury demand, which has dwindled from its euphoric 2025 high. While most BTC treasury companies have reduced their market activity, Strategy has continuously doubled down on its position with additional Bitcoin purchases.

As Bitcoinist reported, the Saylor-led firm recently added over 1,000 coins to its holdings, bringing its Bitcoin treasury to around 762,099 BTC (around of 3.81% of the entire circulating supply). Meanwhile, the US-based Bitcoin exchange-traded funds recorded four consecutive weeks of capital inflows, prior to this week’s negative performance.

Bitcoin Price At A Glance

After falling to around $65,500 on Friday, the market leader is now hovering around $66,300. According to data from CoinGecko, the BTC price is down by more than 4% in the past 24 hours.

The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView

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