Bitcoin has shed about $3,500 in value over recent days, slipping from above $70,000 earlier in March to around $66,500, as . On one particularly turbulent day, about 22,000 BTC were single session. Yet, the Bitcoin price is still holding above support and hasn’t broken below the $60,000 range. 

A different dynamic is quietly taking shape, one that raises a more important question than the selloff itself: who is actually absorbing all the Bitcoin being sold? 

ETF Demand Is Quietly Absorbing Market Supply

Short-term holders, those who acquired Bitcoin relatively recently and are most sensitive to price drawdowns, have been routing coins to exchanges at an elevated pace. However, on-chain data from CryptoQuant data reveals a counterforce of equal or greater magnitude.

The latest data points to a steady flow of Bitcoin moving into institutional hands, particularly through spot ETFs. Over the past 30 days, roughly 63,000 BTC has been accumulated by institutions. This figure stands in contrast to the daily selling pressure coming from short-term holders.

As shown in the ETF flows chart below, which was the social media platform X by a crypto analyst with the name Crypto Tice, green bars representing ETF inflows consistently offset red periods of outflows, even during days where price action isn’t holding up as expected. This has given rise to a pattern of large buyers stepping in to buy BTC during dips and after they’ve slowed down, effectively soaking up available liquidity.

Are Sellers Running Out Of Bitcoin To Sell?

March had its ups and downs in terms of price action, with Bitcoin briefly reclaiming levels above $76,000 as selling increased toward the end of the month. 

As it stands, the Bitcoin price is below $70,000, and it is even at which would bring it to six consecutive months of bearish closes. At the time of writing, Bitcoin is trading at $67,339, which places it just 0.57% above its March open of $66,970.

On the other hand, US-based Spot Bitcoin ETFs $1.2 billion in net inflows for March 2026, bringing an end to four consecutive months of net outflows. This turnaround shows that institutional appetite is starting to return after a prolonged period of reduced exposure, with capital gradually flowing back into Bitcoin.

Although these inflows to fully counterbalance the short-term they do point to a willingness among larger players to accumulate at the current price range. Short-term holders, by definition, have a finite supply of coins acquired at recent prices. If the current absorption rate continues, then the supply available to sellers will continue declining while demand is still strong.