Bitcoin (BTC) buyers who bought the last month were the hardest hit during recent crypto market selloffs

Bitcoin (BTC) shed 13.5% of its value in the past 30 days and has dropped over 29% from its all-time high

Crypto market analyst firm Bitfinex said on Friday that Bitcoin (BTC) buyers who purchased the cryptocurrency in the last month were hit hardest during recent crypto market selloffs.

Bitcoin (BTC) shed 13.5% of its value in the past 30 days and has dropped over 29% from the all-time high set in January, the biggest correction of the current bull cycle, according to the Bitfinex Alpha Report released on Friday, March 17.

Past cycles witnessed similar drawdowns ranging from 30% to 50%. However, some expected a different outcome this time due to new institutional adoption through spot BTC exchange-traded funds on Wall Street.

U.S. spot BTC ETFs recorded a blitz to over $100 billion in assets under management within a year, as issuers like BlackRock (NYSE:BLK) and Fidelity attracted massive capital inflows.

Cash allocated to these EFTs has trickled down over the past few weeks, while consecutive outflows have now set records. Last week, nearly $1 billion exited these products, signaling that “institutional buyers have not yet returned with sufficient strength to counteract selling pressure,” Bitfinex analysts wrote.

[Chart: Glassnode via Bitfinex Alpha Report]

Tepid price action has also rattled crypto sentiment. Indicators like the Fear & Greed index dropped to multi-year lows, “exacerbating sell-side pressure” as short-term holders capitulated, according to the Bifiniex report.

Data from blockchain analytics firm IntoTheBlock supported the assertion from Bitfinex analysts. The “Global In/Out of the Money” metric showed 20% of all BTC holders were in unrealized losses. Most of these buyers purchased their Bitcoin between $85,700 and $106,800 per IntoTheBlock.

Chart: Glassnode via Bitfinex Alpha Report

“As we observe a slowing pace of fresh capital inflows and a shifting cost basis, it indicates a weakening demand environment. This trend becomes increasingly evident as Bitcoin struggles to maintain itself above pivotal levels. Without new buyers stepping in to absorb the tokens being sold, we might witness extended consolidation, or further downside as weaker hands continue to exit their positions,” Bitfinex analysts said.

Financial markets are also digesting the result of Trump’s tariffs and U.S. macro data, which could put further downside pressure on crypto prices.

While inflation cooled and the jobs market showed signs of resilience, a rise in underemployment and macro uncertainty incentivized a hands-off approach from many investors. But Bitfinex analysts believe a bullish outcome remains possible if the right factors align.

The key factor to watch is whether long-term holders or institutional demand re-emerge at these lower levels. If deeper-pocketed investors begin absorbing supply, it could signal a shift back toward accumulation, potentially stabilizing price action and reversing sentiment.

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