Bitcoin demand hits 2025 highs – So why hasn’t BTC price recovered?

In their weekly Market Pulse report, blockchain data and intelligence platform Glassnode observed a 199% surge in the Bitcoin [BTC] spot CVD. Notably, the Funding Rates indicated a decrease in bearish positioning, and the strong increase in perpetual CVD showed buy-side aggression from leveraged traders.

Together, these data points highlighted robust bullish momentum, the report concluded. At the same time, the options market presented a more cautious outlook. Traders were anticipating higher future volatility, as shown by the increase in the volatility spread.

The report concluded that the market showed a mix of bullish sentiment and caution from participants. Investors were balancing risk and capital allocation.

No BTC recovery sign yet?

A crypto analyst observed that the market had plenty of capital but little conviction. In previous cycles, when the stablecoin reserve ratio on Binance reached historical lows, the Bitcoin price was quick to post a strong recovery.

This cycle, the stablecoin supply on Binance has been rising, and the BTC supply on the exchange has been waning. This resulted in unprecedented lows for the exchange stablecoin reserve ratio.

The ratio has been below the previous cycle market bottoms for 177 days, but there has been no sign of recovery yet. According to the analyst, this highlighted an abundant supply of capital in the form of stablecoins.

However, this capital is not rotating into Bitcoin. In other words, the market conviction was low. Moreover, holders have been eager to take profits on the way up, further stalling any recovery attempts.

In a post on X, André Dragosch observed that the institutional demand for Bitcoin was rapidly increasing. The Head of Research for Europe at Bitwise Asset Management wrote that this acceleration in demand was the highest since 2025.

It should be noted that the advance and decline in institutional demand more or less follow the price trends. The magnitude of capital flow can be illuminating. In March and April 2025, the local market bottom was bought up with haste as BTC made a quick resurgence.

Over the past two months, the resurgence has been beleaguered, but the short-term uptrend was still intact. If the accelerating institutional demand is trustworthy, it is only a matter of time before Bitcoin makes new local highs.

Final Summary

• The Weekly Pulse report from Glassnode showed strong bullish momentum in the perpetuals market and high spot CVD to show aggressive buying.
• The short-term confidence was contrasted by unprecedented amounts of capital sitting sidelined on Binance over the past six months, signaling investor hesitation.