The cryptocurrency market has remained under pressure, recording significant outflows over recent months.
Glassnode reports that unrealized losses across the broader crypto ecosystem have reached $350 billion, with Bitcoin investors accounting for $85 billion of that figure.
The analytics firm also projects a volatile phase ahead for Bitcoin in particular.
Digital Asset Treasuries appear to be treating this warning as a signal to step in, with exchange-traded fund (ETF) investors following suit.
Recent data from Glassnode shows steady Bitcoin [BTC] accumulation by DATs, suggesting a shift in investor positioning.
Bitcoin DAT steps in
Treasury netflows have trended upward since the fourth quarter of the year, with daily accumulation approaching 24,000 BTC.
At present, DATs hold more than 1.69 million Bitcoin, representing 8.03% of the total supply and valued at approximately $153.4 billion.
Compared to the fourth quarter of 2024, accumulation in the current quarter has been notably stronger.
This comes despite a more bearish market tone, particularly when contrasted with December 2024, when Bitcoin first surged above the $100,000 mark.
Sustained accumulation at this level is generally price-supportive and could strengthen Bitcoin’s ability to hold above the $90,000 region, even as selling pressure persists.
Institutions to maintain accumulation pace
Institutional investors are not backing down. U.S. spot Bitcoin ETFs continue to increase their exposure, purchasing $233.7 million worth of Bitcoin by the close of the most recent trading week.
Last week alone, total net inflows reached $286.6 million, comprising $424.5 million in net accumulation offset by $137.9 million in net sales.
Trading volume currently stands at $124.15 billion, according to CoinGlass.
With buy activity outweighing sell pressure, market data suggests improving sentiment and a gradual return of confidence, positioning Bitcoin on a potentially net-positive path.
However, the Fund Market Premium offers a more cautious signal. It currently shows a negative reading, indicating that ETFs are trading below their net asset value. This points to weaker short-term momentum.
Still, the data suggests a baseline level of confidence, as investors continue accumulating through ETF products despite subdued premiums.
2 factors supporting Bitcoin
Global liquidity has risen sharply. Global M2 recently hit an all-time high of roughly $130 trillion, according to Alphractal.
In simple terms, rising global M2 reflects expanding liquidity as central banks ease financial conditions. Historically, this environment has favored risk assets.
As liquidity increases, a portion of this capital could rotate into risk assets such as Bitcoin, supporting demand growth.
In the U.S., sentiment has already begun to shift.
The Federal Open Market Committee (FOMC) recently cut interest rates by 25 basis points, reducing borrowing costs and improving conditions for risk-on assets. This move has historically benefited Bitcoin.
For now, capital rotation remains the key factor to watch, as sustained inflows could accelerate upward price movement.
Final Thoughts
- The extended Bitcoin sell-off continues to see Digital Asset Treasuries (DATs) and institutional investors accumulate.
- Global economic conditions and U.S. quantitative easing could support Bitcoin’s upward momentum.
