Bitcoin institutional demand remains intact despite recent price volatility and weakening retail sentiment, according to new on-chain data from CryptoQuant.The analytics firm found that large custody wallets — typically associated with institutions, funds, and exchange-traded products — have accumulated $53 billion worth of Bitcoin over the past 12 months, signaling that long-term accumulation has continued beneath the surface.Institutions continue accumulating BitcoinCryptoQuant founder Ki Young Ju said on Tuesday that wallets holding between 100 and 1,000 BTC have added approximately 577,000 Bitcoin over the past year.“Institutional demand for Bitcoin remains strong,” Ju said, noting that this wallet cohort includes spot Bitcoin ETFs and professional custodians.“Excluding exchanges and miners, this gives a rough read on institutional demand — and it’s still flowing in.”According to CryptoQuant, balances in this wallet group have increased by roughly 33% over the past 24 months, closely aligning with the launch and expansion of U.S. spot Bitcoin ETFs in early 2024.ETF inflows reinforce long-term accumulation trendDespite recent price pullbacks, U.S.-listed spot Bitcoin ETFs have recorded approximately $1.2 billion in net inflows so far this year, even as Bitcoin itself has gained just over 6%.The divergence suggests that institutional allocators continue to view price weakness as an accumulation opportunity rather than a signal to exit.Political economist Crypto Seth echoed that view, stating:“Institutions have just begun investing in Bitcoin and Ethereum. I think this is only the beginning — most people can’t imagine what adoption looks like in 2030 or 2040.”Corporate Bitcoin treasuries accelerate buyingInstitutional accumulation has also been supported by the rapid expansion of digital asset treasury (DAT) holdings, led by Michael Saylor’s Strategy.According to Glassnode:Corporate and private treasuries have added 260,000 BTC since JulyHoldings increased 30% in six monthsTotal DAT balances now exceed 1.1 million BTCThis accumulation has significantly outpaced Bitcoin miner issuance over the same period, reinforcing the tightening supply narrative.Glassnode previously noted that this trend reflects a structural shift, where Bitcoin supply is increasingly migrating from liquid markets into long-term institutional custody.Retail sentiment weakens as institutions accumulateWhile institutional activity remains strong, retail sentiment has deteriorated.The Bitcoin Fear & Greed Index slipped back into “fear” territory at 32/100 on Tuesday, after briefly touching “greed” levels for the first time since October.The sentiment reversal followed Bitcoin’s pullback from last week’s high near $97,000 to below $92,000, driven largely by escalating trade tensions between the United States and Europe.Historically, periods where retail fear coincides with institutional accumulation have often preceded medium- to long-term trend reversals — though timing remains uncertain.Institutional flows continue diverging from retail behaviorThe data highlights a widening gap between retail psychology and institutional positioning:Retail: risk-averse, headline-driven, sentiment deterioratingInstitutions: steady accumulation, ETF inflows, treasury expansionAccording to CryptoQuant, this divergence reinforces the idea that Bitcoin’s current market phase is being shaped more by long-term capital allocation decisions than speculative retail trading.As macro uncertainty continues to dominate short-term price action, on-chain data suggests institutional participants remain focused on structural exposure rather than short-term volatility.
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