Headline: Institutional demand dwarfs new supply as Bitcoin selling from OGs retreats — market recovery gains traction Institutional appetite for Bitcoin has far outpaced newly mined supply since 2024, and a meaningful drop in selling from early adopters has helped improve the odds of a sustained recovery. Why it matters - “Bitcoin OGs” — early miners, developers and first adopters who bought BTC when prices were often below $100 and held for years — pared back selling that had weighed on momentum. Analysts say profit-taking from that cohort contributed to slower price action in 2025. According to CryptoQuant, the 90-day selling rate from OGs fell from about 3,000 BTC in 2024 to roughly 1,000 BTC by 2026, a 73% decline. Institutional demand vs. new supply - The structural picture for demand looks strong in 2026. Institutions have taken in roughly 30,000 BTC as of mid-January 2026 versus about 5,700 BTC newly minted by miners — nearly five times new supply (source: Bitwise). That imbalance gives price support as fresh inflows soak up miner issuance. What changed since late 2025 - Market headwinds that peaked in late 2025 — heavy selling from long-term holders (defined here as investors holding >5 months), ETF outflows and excessive leverage — have largely been worked off, creating a cleaner setup for recovery so far in 2026. Macro and regulatory catalysts - ETF-driven inflows that began with the product launches in 2024–2025 have continued to matter. JPMorgan analysts expect institutional flows to pick up further in 2026 after a record $130 billion in 2025, potentially accelerated by clearer regulation such as the proposed U.S. Clarity Act, which could unlock more institutional participation (source: JPMorgan). Sentiment indicator: True MVRV - The True MVRV oscillator, which gauges market cycles and swings in investor profitability/sentiment, bottomed near 1.0 and has recovered to about 1.1 (source: CryptoQuant). Historically, local tops have appeared when MVRV pushed toward mid-range (~1.5) or high (~2.0). If the current recovery continues, a rise toward those levels could signal an intermediate cooling or distribution phase. Price snapshot - At press time BTC was trading around $95,500, up ~18% from the Q4 2025 low of $80,600 (source: CryptoQuant). Bottom line - Lower selling from long-term early holders plus robust institutional absorption of newly issued BTC has improved Bitcoin’s structural outlook heading into 2026. Still, key indicators like True MVRV and ongoing regulatory and macro developments will be important to watch for signs of further upside or potential pullbacks. Disclaimer: AMBCrypto's content is informational and not investment advice. Trading cryptocurrencies carries high risk; readers should do their own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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