Bitcoin is holding steady near $109,000 but is facing signs of weakening demand, with institutional purchases by firms like Strategy and ETF inflows slowing significantly in recent weeks. At the same time, Tesla CEO Elon Musk has launched the America Party, a new political initiative that openly supports Bitcoin. While Musk’s backing gives the cryptocurrency fresh political visibility, analysts note that declining spot demand and limited retail participation continue to weigh on price performance.
Bitcoin Hovers at $109K as Demand Weakens Despite Institutional Interest
Bitcoin (BTC) is trading at approximately $109,451, marking a 0.8% rise over the past week and a 4.5% gain over the last month.. Yet, even with steady institutional interest and a favorable macro backdrop, the world’s largest digital asset remains stuck in a consolidation range, leaving many market watchers questioning what it will take to reignite a meaningful rally.
Institutional Support Can't Offset Shrinking Spot Demand
Despite prominent institutional moves — including Michael Saylor’s Strategy (MSTR) continuing to accumulate BTC, and sustained inflows into Bitcoin Exchange-Traded Funds (ETFs) — a new report from CryptoQuant reveals a stark disconnect between institutional buying and overall market demand.
“ETFs and MSTR purchases are a portion of bitcoin demand, but overall demand contraction is more than offsetting these purchases,” CryptoQuant noted. “The acceleration of overall demand growth is what drives price rallies.”
The data is sobering. Over the past 30 days alone, demand for BTC has contracted by approximately 895,000 coins. That drop dwarfs the combined impact of institutional purchases, which have slowed significantly compared to their December highs. At the end of last year, ETFs absorbed 86,000 BTC and MSTR bought 171,000. In stark contrast, ETFs purchased just 40,000 BTC last month, while MSTR’s acquisitions fell to a mere 16,000 BTC.
Perhaps even more telling than institutional flows is the state of Bitcoin’s mempool — the waiting room for unconfirmed transactions. At present, the mempool is nearly empty, a strong indicator that retail spot demand is drying up.
This suggests that price action is being driven almost entirely by institutions, and with even those flows declining, the upward momentum for BTC appears increasingly unsustainable without fresh demand catalysts.
Treasury Strategy Losing Its Shine?
The Bitcoin treasury strategy, once a trending narrative with companies emulating Strategy’s aggressive approach, is also coming under scrutiny. Speaking to Bloomberg, SkyBridge Capital founder Anthony Scaramucci warned that the replicative BTC-on-the-balance-sheet model is likely to fade.
“Right now we’re having this replicative treasury company idea,” said Scaramucci. “So, you know, it will fade.”
He clarified that Saylor’s case is unique due to the diversified nature of Strategy’s Bitcoin-linked financial products. However, for newer entrants trying to follow the same playbook, the outlook may not be as promising.
“You have to look through the underlying costs associated with each one of these treasury companies,” Scaramucci added, urging caution despite his bullishness on Bitcoin overall.
Amid the subdued sentiment, Standard Chartered remains one of the few steadfast bulls in the room. The British multinational bank continues to project a $200,000 BTC price target, expressing confidence that the long-term fundamentals of the cryptocurrency remain intact despite current headwinds.
This forecast hinges on a belief that regulatory clarity, institutional adoption, and macroeconomic shifts — including a weakening dollar and growing de-dollarization — will eventually act as tailwinds for Bitcoin’s price.
Looking Ahead: A Breakout or Breakdown?
For now, however, Bitcoin is locked in a prolonged consolidation phase with no immediate catalyst in sight. The market appears to be in a holding pattern, waiting either for renewed retail enthusiasm or for a significant macro or technological event that could breathe life back into demand.
If institutional purchases continue to slow, and retail remains largely absent, Bitcoin may struggle to maintain its current price level, let alone break past its all-time highs.
Still, with the next Bitcoin halving less than a year away and global capital markets watching crypto more closely than ever, many believe that BTC’s quiet phase could be the calm before the next major storm.
Elon Musk Forms “America Party” to Challenge US Political Duopoly — Confirms Support for Bitcoin
Musk’s announcement came just days after a high-profile public feud with former ally Donald Trump over the recently passed $3.4 trillion “Big, Beautiful Bill” — a sweeping spending package Musk called a “disgusting abomination” for its impact on the federal deficit. Now, with the launch of the America Party, the SpaceX and Tesla CEO is calling for a reset of both the political and monetary systems — and Bitcoin is firmly in his vision for the future.
“Fiat Is Hopeless”: Musk Pledges Support for Bitcoin
The Tesla CEO confirmed the America Party’s pro-Bitcoin stance on Sunday in a reply to a user on X (formerly Twitter) who asked if his new political party would support the digital currency.
“Fiat is hopeless, so yes,” Musk replied — a statement that reverberated through both political and crypto circles alike.
The comment adds another layer to Musk’s long-running relationship with cryptocurrencies, which has included Tesla’s brief acceptance of Bitcoin for payments and Musk’s public support of Dogecoin. Now, it appears Bitcoin could be a core part of his vision for a new American political and financial future.
In his Saturday announcement, Musk said the America Party was born from frustration with a political establishment he believes has become indistinguishable, especially when it comes to reckless spending.
“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” Musk wrote on X. “Today, the America Party is formed to give you back your freedom.”
According to Musk, the America Party’s strategy could involve targeting just two or three key Senate seats and up to ten House districts. That, he argues, would be enough to sway tight votes and force both parties to legislate in line with the public’s interests — especially given the razor-thin margins in Congress.
Rift With Trump and Growing Political Fault Lines
The America Party’s launch comes just a week after Trump signed the controversial “Big, Beautiful Bill” into law — a move Musk vocally opposed. The bill’s $3.4 trillion spending plan sparked fury from fiscal conservatives and libertarians, many of whom saw Musk’s criticism as a call to action.
Trump, for his part, dismissed Musk’s movement as a fantasy.
“Musk has gone completely off the rails,” Trump posted on Truth Social. “A third party has never succeeded in the history of the US”
But Musk is betting that history can change. In recent years, public disillusionment with the Republican and Democratic parties has grown, and a 2024 Gallup poll found that 62% of Americans believe a third party is needed.
The America Party is already drawing attention from other prominent figures. Mark Cuban, outspoken entrepreneur and crypto investor, has reportedly shown interest. Anthony Scaramucci, founder of SkyBridge Capital and a longtime Bitcoin bull, is also said to be exploring involvement with Musk’s initiative.
While the America Party has not yet filed with the Federal Election Commission (FEC), it has already launched an official website and begun attracting early supporters. Musk has not provided a formal platform, but early messaging suggests a strong emphasis on monetary reform, decentralization, and reducing federal bloat — themes that resonate deeply with Bitcoin’s ideological base.
Bitcoin as a Political Symbol
By backing Bitcoin, Musk is not just endorsing a currency — he’s signaling a rebellion against the traditional monetary system, which he argues is corrupted by inflation and centralized control. Bitcoin, with its fixed supply and decentralized nature, aligns with the America Party’s broader message of freedom from institutional excess and political graft.
This move could attract a new class of crypto-native voters — especially younger Americans disillusioned by the status quo. With blockchain and financial sovereignty becoming increasingly politicized, the America Party could turn Bitcoin into a cornerstone of its identity — much like environmental issues were once adopted by the Green Party.
Despite the buzz, political analysts remain skeptical of the America Party’s viability. Third-party efforts in the US have historically failed due to institutional roadblocks, voter polarization, and the winner-takes-all electoral system.
Yet Musk’s reach is undeniably vast. With over 180 million followers on X and a loyal fanbase spanning tech, finance, and crypto, even a fringe third-party campaign could shape national conversations — particularly in battleground states where margins are slim.
And if nothing else, Musk’s declaration of support for Bitcoin marks a pivotal moment in the political acceptance of digital assets.
Bitcoin Politics Enters a New Era
Elon Musk’s America Party may still be in its infancy, but its potential impact is already stirring debate in both political and financial arenas. With a core message of fiscal responsibility, decentralization, and freedom — underpinned by support for Bitcoin — Musk is planting a flag for a new kind of political and monetary future.
Whether the America Party becomes a serious contender or simply a high-profile protest against the status quo, one thing is clear: Bitcoin is no longer just a financial asset — it’s becoming a political symbol.
