Institutions Are Loading Up on Bitcoin (BTC), So Why Is the Price Still Falling?

Over the past 9 days, Bitcoin (BTC) price has dropped by around 10%, slowly grinding lower rather than collapsing in a single shock. Bitcoin currently trades near $86,000, even as headlines continue to highlight billion-dollar institutional buying. That contrast raises a simple question. Why does Bitcoin keep falling if big money is still stepping in?

The explanation becomes clearer once selling pressure is taken into account. According to Bull Theory, Bitcoin is not weakening because its fundamentals are broken. Price is falling because supply is being pushed into the market from specific and powerful sources.

China Mining Restrictions Are Putting Pressure on Bitcoin Supply

China has once again tightened restrictions around Bitcoin mining, and the impact is already visible on the network. Hash rate has dropped by roughly 8%, which is a meaningful move even in a globally distributed mining environment. China still controls close to 14% of global hash power, so changes there rarely stay isolated.

History helps frame why this matters. During 2021, China banned mining province by province while controlling more than 50% of the network hash rate. Conditions are different today, yet an 8% drop still forces difficult decisions from miners and large holders. Equipment shuts down, operations pause, and financial pressure starts to build.

Bitcoin price tends to reflect these structural stresses before they fully play out in headlines. Selling often begins quietly, long before the broader market connects the dots.

Bitcoin Price Can Fall Even While Institutions Buy

Bitcoin trending lower during heavy institutional accumulation feels contradictory on the surface. Bull Theory points out that this combination usually signals forced selling rather than fear driven exits. Institutions buying billions in BTC does not automatically stop the price from falling if supply entering the market is large enough.

Forced selling changes the dynamic. Sellers are not reacting to short term price moves. They are responding to operational or financial pressure that requires liquidity regardless of where BTC price sits. That kind of supply can overwhelm steady demand for longer than many expect.

WHY IS BITCOIN STILL DUMPING WHILE INSTITUTIONS ARE MAKING BILLION DOLLAR BUYS?

Bitcoin is not going down because fundamentals are weak.

It is going down because selling pressure is stronger and coming from deeper sources.

One major reason is China’s mining crackdown coming… pic.twitter.com/QBAG8PKAKh

— Bull Theory (@BullTheoryio) December 17, 2025

OG Asian Whales Appear to be Selling Ahead of the News

Many early Bitcoin holders are based in Asia, with China playing a major role in Bitcoin’s early mining and accumulation phase. Bull Theory suggests these long term holders likely anticipated renewed mining pressure weeks before restrictions became widely discussed.

Onchain data already reflects increased selling activity from long term holders over the past 1 to 2 months. That timing matters. Selling that starts early tends to look slow and controlled, which aligns closely with the gradual decline seen in Bitcoin price.

This type of distribution does not resemble panic. It looks more like preparation.

Miner Capitulation Adds Another Layer of Selling Pressure

Mining shutdowns trigger a chain reaction that directly impacts BTC supply. Revenue stops when machines go offline. Equipment often gets sold to cover costs. Bitcoin reserves held by miners become a source of liquidity to manage losses and uncertainty.

This selling is not optional. Miners cannot simply wait for a better BTC price when operating expenses continue to pile up. Once that process starts, supply enters the market steadily and persistently.

Bull Theory emphasizes that this kind of selling happens regardless of price level, which explains why Bitcoin price can stay weak even during periods of visible demand.

Regional Exchange Data Shows Where Selling Is Really Coming From

ETF outflows in the US exist, yet they fail to explain the speed and depth of the recent Bitcoin price decline once a few large outlier days are removed. The clearer signal appears in regional exchange data.

Asian exchanges such as Binance, Bybit, and OKX show consistent net spot selling, especially throughout Q4. Coinbase, which reflects more US based flows, continues to show net buying over the same period.

That divergence matters. Demand from the US remains steady, while most of the selling pressure is coming from Asia, where trading activity is highest and liquidity runs deepest.

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Why the Bitcoin Price Decline Makes More Sense Now

Bitcoin can fall during strong institutional buying when supply is shifting hands under pressure. OG holders selling, miners forced to liquidate, and selling concentrated in high activity regions create conditions where price struggles to stabilize.

This does not resemble panic selling. It looks more like a redistribution phase, where Bitcoin moves from one set of holders to another. Bitcoin price often stays soft until that process runs its course.

Where BTC goes next depends less on headlines and more on how long this supply transfer continues. That tension between demand and forced selling remains the key story to watch.

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