A growing imbalance between selling pressure and buyer interest is weighing on bitcoin markets, with analysts flagging a roughly $4.4 billion supply overhang. The accumulation of available coins comes as institutional appetite, a key driver of recent price strength, appears to be softening. Reduced inflows from large buyers leave the market more exposed to downside risk, since fewer participants are absorbing the supply entering circulation. The shift marks a potential turning point after a period in which institutional demand helped underpin valuations. Should buying continue to wane, the excess supply could pressure prices in the near term. The development underscores how reliant recent market dynamics have become on sustained institutional participation, and how quickly conditions can change when that demand cools. Traders are watching closely for signs of renewed interest or further weakening heading into the second half of 2026.
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