Cryptocurrency markets face mounting pressure with unrealized losses reaching $350 billion, yet institutional investors continue aggressive Bitcoin accumulation.
Digital Asset Treasuries now hold 1.69 million Bitcoin valued at approximately $153.4 billion.
Daily treasury inflows have approached 24,000 BTC since the fourth quarter of 2024.
What Happened
Unrealized losses across the crypto ecosystem have climbed to $350 billion according to Glassnode, with Bitcoin accounting for $85 billion of that total.
Digital Asset Treasuries currently control 8.03% of Bitcoin's total supply despite heightened market volatility.
This accumulation trend has strengthened compared to the fourth quarter of 2024, when Bitcoin first surged past $100,000.
U.S. spot Bitcoin ETFs recorded $198 million in December inflows through mid-month.
BlackRock's IBIT accumulated nearly $4 billion in December alone, with a single day seeing $223 million in inflows.
Trading volume currently stands at $124.15 billion across Bitcoin ETF products.
The Federal Open Market Committee cut interest rates by 25 basis points to a range of 3.5% to 3.75% on December 10.
Read also: Whale Opens $392 Million Ethereum Position As ETF Inflows Exceed $250 Million
Why It Matters
Global M2 money supply recently hit an all-time high of approximately $130 trillion.
Rising global liquidity historically correlates with increased capital flowing into risk assets including Bitcoin.
The Federal Reserve's rate reduction improves conditions for risk-on assets by reducing borrowing costs.
Sustained accumulation at current levels provides critical price support for Bitcoin above $90,000.
The divergence between rising unrealized losses and continued institutional buying suggests wealth transfer from short-term holders to long-term accumulators.
Liquidity across the crypto market is thinning through lower stablecoin flows and reduced market-maker depth.
This combination of shrinking liquidity and institutional accumulation typically precedes major volatility expansions in Bitcoin markets.
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