PANews reported on May 26th that, according to BIT analysis, the key to market analysis often lies in identifying the core factors driving asset price movements and observing when these factors begin to change. In the case of Bitcoin, its sustained rise over the past period has largely depended on the ebb and flow between institutional demand and the available supply in the market.

Over the past year, spot Bitcoin ETFs and Strategy (formerly MicroStrategy) have been significant sources of this demand. When ETF inflows accelerate and Strategy continues to increase its Bitcoin holdings, Bitcoin prices typically rise. Currently, the combined net purchases by ETFs and Strategy have fallen to only $870 million, primarily due to significant outflows from ETFs, shifting from net buying to net selling. Until ETF inflows stabilize and rebound, Bitcoin is likely to remain in a consolidation phase in the short term.