Bitcoin Market Sees Tension Between Institutional Demand and Broader Selling Pressure

The cryptocurrency market has experienced a surge in institutional buying, with significant inflows into bitcoin exchange-traded funds (ETFs) and steady accumulation by major firms. However, this increased demand is being met with resistance from broader market participants, including large retail holders, miners, and long-term investors.

According to recent research from CryptoQuant, the market saw net sales totaling 63,000 BTC over a 30-day period in March. This selling pressure has outweighed the support from institutional inflows, resulting in hampered price gains.

The 'Fear and Greed' index has lingered in extreme fear territory during the past month, indicating that market psychology is under strain. Additionally, prices on U.S.-based exchanges have traded at a discount compared to other major platforms, suggesting that American investors are still cautious at higher prices.