**[Analysis: Internal Bitcoin Demand Contracts, Multiple Indicators Show Significant Retail and Whale Sell-Offs]** Odaily Planet Daily reports that a CryptoQuant analysis indicates that in the first three months of 2026, internal demand in the Bitcoin market is contracting significantly. The overall 30-day net demand stands at -63,000 BTC. Despite accelerated institutional buying (approximately 50,000 BTC via ETFs and 44,000 BTC via Strategy), the market has seen retail investors, old whales, and miners collectively sell around 157,000 BTC. Large holders (1,000–10,000 BTC) have shifted from being the market's largest buyers to its largest sellers, distributing approximately 188,000 BTC over the past year. Medium-sized holders (100–1,000 BTC) continue to buy, but their growth rate has declined by over 60% since October 2025. Bitcoin's spot price remains between $67,000–$68,000, with a roughly 21% premium compared to the weighted average cost of $54,286, indicating that most holders are still profitable and the market has not yet bottomed out. Market sentiment and capital flows appear disconnected: the Fear & Greed Index is in the extreme fear range (8–14), yet ETFs saw net inflows exceeding $1 billion in March. The Coinbase Premium Index remains negative, reflecting limited participation from U.S. institutions. Geopolitical volatility (Iran conflict) has caused repeated price fluctuations, with market strategies leaning toward caution. Overall demand is slowly fading rather than experiencing panic selling. Although Bitcoin has dropped approximately 47% from its October 2025 all-time high of $126,000, this is far below the 85%+ crashes seen in 2013 and 2017. Zack Wainwright notes that this reflects the gradual maturation of the Bitcoin market, with volatility compressing over time. Potential catalysts include Morgan Stanley's approval for a low-fee Bitcoin ETF, which could provide access to $6.2 trillion in assets managed by 16,000 financial advisors, and Strategy's STRC preferred stock product continuing to purchase 44,000 BTC per month, potentially offering stable buying support for the market. Short-term technical indicators suggest that if the Iran conflict eases, Bitcoin could rebound to $71,500–$81,200. Based on comprehensive indicators, CryptoQuant concludes that internal demand in the Bitcoin market is contracting, with current price support relying on institutional ETFs, Strategy, and new channels absorbing sell-offs from retail investors and large holders. (CoinDesk)