Glassnode data shows that unrealized losses across the broader crypto ecosystem peaked at $350 billion, reflecting months of significant sell pressure and negative market sentiment. Bitcoin investors alone accounted for $85 billion of those unrealized losses, underscoring the vulnerability of even the largest digital assets during bearish cycles.
Despite this heavy loss environment, on-chain metrics reveal a shift as Digital Asset Treasuries (DATs) ramp up their Bitcoin accumulation. Treasury netflows have trended upward throughout Q4 2025, averaging nearly 24 000 BTC bought per day. DATs now hold over 1.69 million BTC, representing approximately 8.03 percent of total supply and valued at $153.4 billion. Such steady accumulation suggests that large-scale buyers view current price levels as a strategic entry point rather than a sign to exit.
Institutional demand further extends beyond DATs. U.S. spot Bitcoin ETFs have recorded net inflows totalling $233.7 million in the most recent trading week, offsetting some sell pressure from retail sources. Last week’s trading data indicate $424.5 million in gross purchases against $137.9 million in redemptions, signalling continued confidence from professional investors in ETF structures as a primary vehicle for exposure.
Market participants point to improving macro conditions as a supporting factor for renewed Bitcoin interest. Global M2 money supply recently hit an all-time high of roughly $130 trillion, reflecting loose financial conditions and elevated liquidity levels from central bank balance sheet expansions. Historically, periods of rising money supply correlate with increased allocations to risk assets, including cryptocurrencies.
In addition, the Federal Open Market Committee’s decision to cut interest rates by 25 basis points has lowered borrowing costs, potentially tilting some institutional portfolios back toward risk-on strategies. While rate cuts alone do not guarantee immediate price appreciation, they form part of a broader easing narrative that tends to support non-sovereign assets in the medium term.
Nonetheless, traders remain cautious. The Fund Market Premium for ETFs is trading below net asset value, suggesting short-term momentum remains muted. Weak premiums indicate market participants are still pricing in potential downside or uncertainty regarding future inflows. Continued accumulation by DATs and ETFs may slowly rebuild price support, but a sustained rally will require a broader shift in market psychology and liquidity conditions that favour risk assets more broadly.
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