The cryptocurrency market has endured an extended period of stress, with capital steadily exiting risk assets over recent months. Despite this pressure, new data suggests that selling momentum may be losing strength, particularly for Bitcoin, as large-scale buyers begin to re-enter the market.
According to Glassnode, unrealized losses across the crypto sector have climbed to approximately $350 billion. Bitcoin holders account for nearly $85 billion of that total, reflecting the depth of the recent downturn. The analytics firm has also warned that Bitcoin may face heightened volatility in the near term as markets attempt to stabilize.
While these signals point to caution, some market participants appear to be interpreting the drawdown as an opportunity rather than a risk.
Digital Asset Treasuries Increase Exposure
Digital Asset Treasuries have emerged as consistent buyers during this period of weakness. Glassnode data shows a steady rise in Bitcoin accumulation by these entities since the fourth quarter of the year, with daily net inflows approaching 24,000 BTC.
Currently, Digital Asset Treasuries collectively hold more than 1.69 million Bitcoin. This represents just over 8 percent of the circulating supply and carries an estimated value of $153.4 billion.
Compared with the same period last year, accumulation activity has intensified even as overall market sentiment remains cautious. This contrasts sharply with late 2024, when Bitcoin first moved above the $100,000 level amid stronger optimism.
Sustained accumulation at this scale often provides structural support for price levels. Continued buying could help Bitcoin maintain strength above the $90,000 range, even if broader selling pressure persists.
Institutional Demand Remains Firm
Institutional investors have also maintained their exposure. U.S. spot Bitcoin exchange traded funds continue to record net inflows, with $233.7 million in Bitcoin purchased by the end of the most recent trading week.
Total inflows for the week reached $286.6 million. This figure reflects $424.5 million in gross buying activity, partially offset by $137.9 million in outflows. According to CoinGlass, aggregate trading volume across these products stands at $124.15 billion.
The balance between buying and selling indicates improving sentiment and a gradual return of investor confidence. However, not all indicators point to immediate upside.
The Fund Market Premium remains negative, meaning many ETFs are trading below their net asset value. This suggests muted short-term momentum and restrained enthusiasm. Even so, ongoing accumulation through ETF vehicles signals a baseline level of conviction among long-term investors.
Two Macro Forces Supporting Bitcoin
Beyond onchain and institutional data, broader macro conditions may also support Bitcoin’s outlook. Global liquidity continues to expand, with Global M2 money supply recently reaching an all-time high near $130 trillion, according to Alphractal.
Rising M2 levels typically reflect easing financial conditions as central banks inject liquidity into the system. Historically, such environments have benefited risk assets as capital searches for higher returns. Bitcoin has often attracted a share of this liquidity during similar cycles.
In the United States, monetary policy has begun to reinforce this trend. The Federal Open Market Committee recently lowered interest rates by 25 basis points, reducing borrowing costs and improving conditions for speculative and growth-oriented assets. Past easing cycles have often coincided with stronger Bitcoin performance.
For now, the key variable remains capital rotation. If liquidity continues to move toward risk assets, Bitcoin could see renewed upward momentum.
Final Thoughts
Despite $350 billion in unrealized losses across the crypto market, large holders and institutional investors are steadily accumulating Bitcoin. Digital Asset Treasuries and exchange traded funds continue to absorb supply, even as short-term sentiment remains cautious. Combined with rising global liquidity and easing monetary policy in the United States, these factors suggest a foundation for recovery may be forming, even if volatility persists in the near term.
