The cryptocurrency market has remained under pressure and has recorded significant outflows in recent months.
Glassnode reports that unrealized losses in the broader crypto ecosystem have reached $350 billion, with Bitcoin investors accounting for $85 billion of that amount.
The analytics firm also predicts that a volatile phase lies ahead, especially for Bitcoin.
Digital Asset Treasuries appear to be taking this warning as a signal to take action, while exchange-traded fund (ETF) investors are following suit.
Recent data from Glassnode shows stable Bitcoin [BTC] accumulation by DATs, indicating a shift in investor positioning.
Bitcoin DAT intervenes
Net flows from government bonds have been on an upward trend since the fourth quarter of the year, with daily accumulation approaching 24,000 BTC.
Currently, DATs own over 1.69 million Bitcoin, which represents 8.03% of the total supply and is valued at approximately $153.4 billion.
Source: Glassnode
Compared with the fourth quarter of 2024, the accumulation in the current quarter has been significantly stronger.
This is despite a more bearish market tone, especially compared to December 2024, when Bitcoin rose above the $100,000 mark for the first time.
Continued accumulation at this level is generally price supportive and could strengthen Bitcoin’s ability to hold above $90,000 even if selling pressure continues.
Settings to maintain the accumulation rate
Institutional investors are not giving up. US spot Bitcoin ETFs continue to increase their exposure, purchasing $233.7 million worth of Bitcoin by the end of the most recent trading week.
Last week alone, total net inflows were $286.6 million, consisting of $424.5 million in net accumulation offset by $137.9 million in net sales.
According to CoinGlass, trading volume currently stands at $124.15 billion.
Source: CoinGlass
With buying activity outweighing selling pressure, market data suggests improving sentiment and a gradual return of confidence, positioning Bitcoin on a potential net positive path.
However, the Fund Market Premium offers a more cautious signal. Currently, the index is negative, indicating that ETFs are trading below their intrinsic value. This points to weaker momentum in the near term.
Still, the data suggests a baseline level of confidence as investors continue to accumulate through ETF products despite moderate premiums.
2 factors that support Bitcoin
Global liquidity has increased sharply. According to Alpharactal, global M2 recently reached an all-time high of roughly $130 trillion.
Simply put, rising global M2 reflects increasing liquidity as central banks ease financial conditions. Historically, this environment has favored risky investments.
As liquidity increases, some of this capital can be converted into risky assets like Bitcoin, supporting demand growth.
Source: Alpharactal
In the US, sentiment is already starting to change.
The Federal Open Market Committee (FOMC) recently cut interest rates by 25 basis points, lowering borrowing costs and improving conditions for risky assets. This move has historically benefited Bitcoin.
For now, capital rotation remains the most important factor to watch as continued inflows could accelerate upward price movement.
Final thoughts
- Bitcoin’s extended sell-off continues to see Digital Asset Treasuries (DATs) and institutional investors piling in.
- Global economic conditions and US quantitative easing could support Bitcoin’s upward momentum.