Bitcoin Retail Demand Collapses Post-2024 Halving

Retail Demand Drops After 2024 Halving Event

Following the 2024 halving, retail demand for Bitcoin has sharply decreased. This event resulted in a block reward reduction to 3.125 BTC, intensifying Bitcoin’s scarcity concerns.

Despite a surge in institutional participation, the decline in retail and “invisible” demand prevents significant price movements. Institutional entities accounted for approximately one-third of demand during the peak.

Institutional Buying Fails to Boost Prices

The diminished retail demand post-halving led to an overall market demand drop of approximately 895,000 BTC. Despite increased institutional involvement, prices remain stagnant.

The financial implications suggest that institutional purchases are unable to offset the retail demand contraction, highlighting a critical shift in market dynamics.

Experts Cite Unique Post-Halving Dynamics

Past Bitcoin halving events often led to delayed price rallies. The 2024 scenario is unique, highlighting reduced demand due to simultaneous institutional participation and retail decline. CryptoQuant, On-chain Analytics Provider, stated:

“Since December 2024, this invisible demand has collapsed. CryptoQuant’s data shows that overall demand has fallen by approximately 895,000 BTC over a one-month period in mid-2025. This decline is roughly equivalent to the combined institutional buying during the same period, effectively canceling out any bullish pressure from large buyers.” – Source

Experts predict potential stabilization if retail demand recovers in future cycles, with historical precedents indicating lagged price increases post-halving events.