Beyond the decline in leveraged and speculative exposure to Bitcoin, spot market demand is also showing clear signs of weakening.
Analysts at market intelligence firm Glassnode have pointed to on chain data suggesting that enthusiasm for Bitcoin within traditional financial markets is steadily diminishing.
According to the firm’s latest observations, the main channels used by traditional investors to gain exposure to Bitcoin, including exchange traded funds and treasury related investment vehicles, are experiencing a noticeable drop in trading activity.
Traditional Market Appetite for Bitcoin Weakens
One of the key indicators supporting Glassnode’s view is the 30 day Simple Moving Average of trading volume for United States spot Bitcoin ETFs. The metric has fallen sharply from approximately $4.4 billion per day in October 2025 to around $960 million daily at present.
This represents a 78 percent decline, highlighting a substantial slowdown in investor participation through ETF products.
CryptoPotato previously reported that last week ranked as the second worst period for Bitcoin ETFs since their launch. As Bitcoin plunged to a 19 month low, investors withdrew a combined $1.72 billion from these funds. The last comparable wave of outflows occurred in February 2025.
Glassnode also noted that trading activity among Bitcoin treasury companies has deteriorated significantly. The 30 day Simple Moving Average of total trading volume across these Digital Asset Treasury firms has dropped from $34.2 billion per day in December 2025 to roughly $17.4 billion today.
The 49 percent decline further reflects fading speculative interest in Bitcoin through traditional investment channels, especially since the performance of these treasury related equities often moves in line with Bitcoin’s price action.
Glassnode summarized the trend by stating that both major avenues of traditional market exposure to Bitcoin are pointing to the same conclusion: speculative demand has largely retreated.
Spot Demand Is Also Losing Momentum
The slowdown extends beyond institutional and leveraged activity. Spot demand for Bitcoin has also contracted considerably.
Recent market behavior shows that investors are increasingly taking profits during price rallies instead of adding to their positions. This shift signals a transition away from an accumulation phase and toward a distribution period, reducing overall Bitcoin network activity to roughly half of its previous peak levels.
At the time of writing, Bitcoin was trading near $62,500, representing a decline of approximately 22 percent from its price of $80,900 just one month earlier. The asset also briefly fell below the $60,000 level over the previous weekend amid persistent selling pressure.
Taken together, these developments suggest that Bitcoin is firmly in a phase of declining spot demand.
With institutional participation weakening and buyers becoming increasingly cautious, the market now faces growing uncertainty over how much further Bitcoin could decline if bearish sentiment continues to dominate trading activity.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
