Analyst: The Bitcoin market hasn’t disappeared; supply is shifting toward corporate holdings

Gate News message: In the first quarter of 2026, the Bitcoin price spent most of the time trading below $70,000, with short-term market sentiment remaining cautious. However, analysis from XWIN Research on CryptoQuant Insights indicates that the price drop is not the market disappearing—it’s the supply landscape being reshaped. Whale sell pressure continues to rise, but corporate buyers are adding in spite of the trend, providing long-term support for the market.

Estimates suggest that publicly listed companies added a net 62,000 Bitcoins in the first quarter. Strategy (formerly MicroStrategy) led the way with purchases of more than 88,000 Bitcoins. It currently holds about 762,000 Bitcoins, with funding sources including convertible notes and stock issuance. These buys are part of a long-term asset allocation strategy, not short-term speculation, creating stable demand for Bitcoin.

The capital flow performance of spot Bitcoin ETFs is complex. BlackRock funds attracted inflows, but Grayscale’s GBTC assets continue to bleed out. In March, flows swung sharply—from a $458 million inflow on March 2 to a $348 million outflow four days later. Total assets under management edged up slightly to $56 billion, indicating capital is rotating among different products rather than new money entering the overall market.

This situation suggests the Bitcoin market is undergoing a structural transition. In the short term, whale sell pressure keeps the price hovering around $70,000, but corporate buying gradually changes the supply profile. Long-term holders can achieve an IPO-like exit through corporate purchases, and while the supply doesn’t vanish, it shifts from early individual holders to the corporate balance sheets.

The key for the second quarter is whether corporate buying can continue to support the market and drive broader demand growth. Strategic institutional buyers are gradually becoming the new force leading the market, supporting Bitcoin’s long-term value while potentially influencing supply-demand dynamics and price trends.