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Bitcoin Demand Collapsing? Adam Back Bullish as Fear & Greed Index Drops

Published 29 May 2026
Kurt Robson
Authors
Edited by Ryan James

Key Takeaways

  • Adam Back remains bullish on Bitcoin.
  • Market sentiment has deteriorated sharply.
  • On-chain data points to softer demand.

Bitcoin pioneer Adam Back’s resurfaced bullish Bitcoin comments from Consensus 2026 come as investor sentiment deteriorates, and on-chain data points to slowing demand from large holders.

The comments come as the Crypto Fear & Greed Index sits at 32, signaling growing anxiety among investors amid weakening demand indicators.

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Fear Deepens as More Holders Slip Underwater

The worsening market mood has coincided with a growing proportion of Bitcoin holders sitting on unrealized losses.

Web3 content creator King Jay highlighted recent on-chain data suggesting that nearly 40% of Bitcoin holders are now underwater.

“Nearly 40% of BTC holders being underwater is enough to make people ask if the 2022 bear market is coming back,” King Jay wrote on CoinMarketCap.

However, he argued that current conditions differ significantly from the crypto downturn four years ago.

While demand has weakened and momentum has faded, long-term holders continue to absorb a substantial portion of available supply.

According to King Jay, the market currently resembles a period of stress-testing investor conviction.

The Crypto Fear & Greed Index‘s slide into extreme fear territory reflects that growing uncertainty.

Large Bitcoin Holders Slow Accumulation

Separately, CryptoQuant data on Friday showed buying activity among large Bitcoin holders has slowed in recent months.

The firm’s analysis found that balance growth among both whale and dolphin wallets has flattened, indicating weaker accumulation trends across key investor groups.

Moreno said wallets holding between 1,000 and 10,000 Bitcoin have posted their sharpest year-over-year contraction of 2026, drawing comparisons with market conditions seen during the previous bear cycle.

Wallets holding between 100 and 1,000 BTC continue to add coins overall, though growth has moderated significantly from levels recorded late last year.

The data points to softer demand from some of Bitcoin’s largest holders as the market struggles to regain momentum.

Back Sees Institutional Adoption as Key Tailwind

Speaking on the Wolf of All Streets podcast, published this week and filmed at Consensus 2026, the Blockstream CEO said he believes Bitcoin is entering a favorable period driven by technological progress, improving regulatory conditions, and the early stages of institutional adoption.

“Well, I think it’s a really good time for Bitcoin,” Back said.

He pointed to a “more open for business environment,” advances in retail infrastructure such as hardware wallets and smartphones, and innovation across Bitcoin’s scaling ecosystem.

Despite concerns over slowing accumulation by large Bitcoin holders, Back argued that one of Bitcoin’s biggest growth catalysts has yet to fully materialize.

While spot Bitcoin exchange-traded funds have attracted billions of dollars since their launch, Back said institutional portfolio allocations remain in their early stages.

“The institutional adoption is still early,” he said, noting that roughly 30% of BlackRock’s spot Bitcoin ETF appears to be held by institutional investors based on regulatory filings.

Back believes a larger wave of demand could emerge once financial advisers and asset managers begin incorporating Bitcoin into model portfolios and managed investment products.

“The actual allocation to these model portfolios, I think, is yet to come,” Back said. “So, there may be a tailwind ahead of us yet.”

Kurt Robson

Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.

He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.

Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.

At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.

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