Bitcoin demand contracts 652,000 BTC as JPMorgan flags debasement trade retreat

JPMorgan says the debasement trade that poured billions into Bitcoin is unwinding, with demand contracting at the fastest pace in more than four years.

Bitcoin demand contracted 652,000 BTC last week, the largest decline since January 2022, as JPMorgan said the retreat from the debasement trade accelerated.

"Investors have continued reducing exposure to both Bitcoin and gold through ETFs and futures markets, with allocations falling back to levels last seen in March 2025," strategists at JPMorgan wrote in a note published June 12.

Corporate Bitcoin accumulation has slowed from more than $500 million per day in April and May to nearly negligible levels in June, according to CryptoQuant data. ETF outflows have exceeded $5.7 billion since mid-May, removing two major sources of demand. Bitcoin traded at $63,024 as of 06:30 UTC, roughly 9% above its realized price of $53,600 — the average price at which coins last changed hands.

The retreat shows that the macro narrative which drove Bitcoin from $16,000 in early 2023 to a record $126,000 in October 2025 has lost its grip. With the next Federal Reserve meeting on July 30 and rate cut expectations fading, Bitcoin faces a test of the $60,000 to $62,000 support zone. A break below that level would open the door to $55,000 to $58,000, according to technical analysis.

Corporate buying dries up as ETF flows reverse

The debasement trade — buying assets such as Bitcoin and gold as protection against inflation, rising government debt, currency depreciation, and a weakening US dollar — has been a primary driver of institutional inflows since 2023. JPMorgan's note confirms what on-chain data has been showing for weeks: that trade is now reversing.

CryptoQuant data shows investors realized losses of approximately 187,000 BTC over the past 30 days, well below the 400,000 BTC recorded in February 2026 and the 1.2 million BTC seen during the November 2022 market bottom. While this suggests the market has not yet experienced the widespread panic selling associated with major cycle lows, it also highlights persistent weakness in demand and institutional participation.

$60,000 support holds the key

Bitcoin's relative strength index stood at 31.95 as of 06:30 UTC, with the signal line at 25.74, indicating deeply oversold conditions. The $60,000 to $62,000 zone represents a critical demand area that held during February's selloff. Reclaiming $65,000 would be the first sign of momentum shifting, with resistance stacked at $72,000 and $76,000 above.

On the downside, losing $60,000 on a daily close would open a move toward $55,000 to $58,000, a level that technical analysts treat as a higher-probability buy zone rather than the start of a deeper correction.

This article is for informational purposes only and does not constitute investment advice.