Institutional sell pressure is easing as ETF flows stabilize, but Bitcoin remains below its 200-day trend level.
Bitcoin’s institutional backdrop remains cautious, yet signs of stabilization are emerging. Selling pressure that dominated early in the year is beginning to ease. Key institutional indicators show reduced distribution across major U.S. venues. Momentum has not fully shifted, but stress levels appear to be declining.
Bitcoin Remains in Corrective Trend as Institutional Demand Fades
Analyst Darkfost stated in an X post that as BTC moved above $60,000 earlier in the year, institutional demand weakened sharply. The monthly averaged Coinbase Premium Gap fell to -$96, signaling heavy disengagement from professional investors on Coinbase.
Recent weakness in the Coinbase Premium Gap builds on a breakdown seen earlier this month. After sliding to a yearly low, the indicator failed to recover meaningfully and continued to trend downward.
📊 From an institutional standpoint, the backdrop remains broadly bearish, although a clear improvement has emerged in recent weeks.
➡️ As BTC moved above $60,000, the monthly averaged Coinbase Premium Gap fell to -$96, reflecting a significant disengagement from professional… pic.twitter.com/THapmbotZm
— Darkfost (@Darkfost_Coc) February 22, 2026
The current drop to fresh lows follows that initial decline, signaling that selling pressure on Coinbase-linked venues has not reversed but has instead deepened. Persistent negative readings suggest institutional demand has remained soft since the previous trough.
Defensive positioning dominated institutional desks during that phase. Large investors stayed cautious and reduced risk during that period. At the time of writing, Bitcoin is still trading far below its 200-day moving average near $98,927. With the asset price around $67,399, the long-term trend remains weak.
$54B in ETF Inflows Frame Bitcoin’s Gradual Capital Rebuild
Historically, strong recoveries usually start after Bitcoin moves back above its 200-day average. That technical confirmation has not occurred. Still, recent data shows a clear improvement in flow dynamics.
According to Darkfost, selling pressure from institutions is easing. Coinbase Premium Gap improved to -$23.8. However, it is still negative, which means demand is not fully back, but selling is much weaker than before. Earlier in the year, the gap was far deeper in negative territory.
In addition, ETF flows have improved, with monthly average outflows dropping from $210 million to $19 million. That means large investors are no longer pulling out money at the same pace.
More importantly, spot Bitcoin ETFs recorded a daily net inflow of $88.10 million. Since launch, these ETFs have attracted $54.38 billion in total inflows. That equals about 679,670 BTC bought through ETF products.
Darkfost argues that the structure now reflects a transition phase. Active trading activity suggests institutional participation has not disappeared. Instead, positioning appears to be shifting toward neutrality and not continued heavy selling.
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