Bitcoin Demand Shows Signs of Recovery Amid ETF Declines and Market Woes

Bitcoin has shown signs of demand recovery after reaching a negative stance; however, market sentiment remains fragile with a sentiment index at 44.9%. ETF holdings have declined, indicating reduced institutional interest. Despite potential technical indicators suggesting a price momentum shift, analysts remain wary due to external economic factors that could impact recovery.

Bitcoin’s demand has recently improved, recovering from a significant decline that saw it reach a negative 200,000 BTC. This rebound has raised awareness, but analysts caution that it may not signal lasting recovery, given ongoing ETF outflows and fragility in market sentiment as shown by a sentiment index fall to 44.9%. While demand is climbing, it remains below zero, indicating that further improvements may be limited in the short term.

After weeks of decline, the 30-day apparent demand for Bitcoin (BTC) has shown signs of recovery, increasing from its lowest level since early 2023. Although it briefly reached a peak of 300,000 BTC in early 2025 when BTC surpassed $100,000, it dropped significantly in February and March, lowering the price below $70,000 in April. The recent rise in apparent demand reflects cautious optimism but lacks firm support.

The sentiment surrounding Bitcoin also deteriorated, as evidenced by a sharp decline in the Advanced Sentiment Index which dropped to 44.9%, indicating market apprehension. BTC prices have fluctuated significantly, with notable highs and lows; from a peak of over $88,000 on April 2nd to as low as $75,000 soon after. Continuous volatility has prompted commentary regarding external macroeconomic factors influencing market stability.

ETF holdings, a proxy for institutional interest, have decreased from 1.19 million BTC in March to approximately 1.115 million BTC in early April, signalling a wavering commitment from investors. This decline prompted alerts in monitoring systems and reflects a growing scepticism from larger institutional players. The concurrent drop in both ETF holdings and apparent demand suggests that institutional reticence could further amplify price instability in the near future.

On a positive note, technical indicators starting from the weekly BTC price chart are showing potential signs of market strength. The LMACD histogram has registered a shift from bearish red to pink, hinting at decreasing negative momentum, a pattern previously observed before price increases. Furthermore, a bullish engulfing pattern has emerged at the current price range, historically aligning with positive price trajectories. However, analysts remain cautious, suggesting that the sustainability of any recovery depends on broader macroeconomic developments and renewed institutional participation.