The post Why On-Chain Metrics Miss the Full Picture of Institutional Bitcoin Buying appeared on BitcoinEthereumNews.com.

In brief Bitcoin closed June above $104,000, its highest monthly close and strongest Q2 on record. U.S. spot Bitcoin ETFs saw nearly $4 billion in inflows during the month, despite muted on-chain activity. Analysts say institutional demand often bypasses traditional blockchain metrics through OTC desks and off-chain transactions. Bitcoin closed above $104,000 in June, marking its highest monthly close and strongest Q2 performance on record. That’s despite traditional on-chain metrics suggesting weaker buyer demand even as U.S. spot Bitcoin exchange-traded funds posted robust figures for the month. For June, U.S. spot Bitcoin ETFs experienced a 12-day streak of inflows totaling nearly $4 billion, including approximately $550 million on June 25, reflecting strong and consistent institutional demand, according to data from SoSoValue. Still, observers point to a disconnect, one that stems from how institutions buy Bitcoin compared to retail investors. That’s because most institutional buying happens out of sight, experts told Decrypt. Such transactions are structured to avoid public visibility, either taking place off-chain or ending up in wallets that don’t move much.  As a result, traditional blockchain metrics often miss the scale and nature of institutional flows, according to Aslan Tashtanov, a blockchain engineer and original contributor to DeepBook at Mysten Labs. “There are several reasons why on-chain data metrics do not tell us the full story about institutional investor behaviors,” Tashtanov told Decrypt. Institutional players “tend to buy on centralized exchanges and through OTC desks,” which are designed to handle large volumes without disrupting markets, he said. The result is a market dynamic where institutional capital can move prices without triggering the usual on-chain signals. What do the signals say Spot retail trading activity in Bitcoin remains neutral, despite recent price fluctuations and a gradual upward trend in the past weeks. Meanwhile, the cumulative balance of Bitcoin held in…

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Filed under: News - @ July 3, 2025 5:23 pm