Analysts at the market research firm Glassnode have highlighted on-chain data indicating a weakening of speculative appetite for bitcoin (BTC) in traditional finance (TradFi) markets.
According to a tweet from the firm, most TradFi channels for Bitcoin exposure are giving off the same signal: BTC volume in treasury vehicles and exchange-traded funds (ETFs) is drying up.
Speculative Interest in BTC Cools
One metric that substantiates Glassnode’s claims is the 30-day Simple Moving Average (SMA) of the United States spot ETF trading volume. This indicator has contracted from $4.4 billion per day in October 2025 to roughly $0.96 billion daily currently. This shift represents a 78% decline, one significant enough to dry up volumes.
CryptoPotato reported that last week was the second worst for Bitcoin ETFs since their inception. As BTC fell to a 19-month low, the ETFs experienced massive net outflows, totaling $1.72 billion. The last time the products witnessed such withdrawals was in February 2025.
Glassnode revealed earlier today that the 30-day SMA of total trading volume across Bitcoin treasury companies has also plummeted from $34.2 billion per day in December 2025 to $17.4 billion per day currently. This 49% drop in trading volume among Digital Asset Treasury (DAT) companies further reflects a lack of speculative appetite for BTC in traditional channels, as interest in DAT equities closely tracks bitcoin’s price.
“Combined with the 49% drop in DAT company volumes flagged earlier, both TradFi channels for Bitcoin exposure are signaling the same thing: Speculative appetite for BTC in traditional markets has largely withdrawn,” Glassnode explained.
Spot Demand Contracts Too
Besides the decline in speculative and leveraged appetite for BTC exposure, spot demand has also pulled back significantly. This can be seen in investors selling into strength instead of increasing their exposure. As reported, the dynamic shift marks the transition from an accumulation phase into a distribution regime, subsequently leading to the cutting of Bitcoin activity in half from its peak.
At the time of writing, BTC was trading around $62,500, 22% below its price of $80,900 a month ago. The asset slipped below $60,000 last weekend amid selling pressure from investors. These are all clear indications that spot demand is in a contraction phase.
With institutional interest weakening and spot demand contracting, it remains to be seen how low BTC will go as the bears continue to steer the wheel.
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