Recent analysis from CryptoQuant reveals a notable decline in institutional trading activity for Bitcoin as 2025 approaches its conclusion. This downturn reflects a broader trend in fund volume metrics, suggesting the market is entering a low-liquidity phase characterized by hesitation rather than aggressive trading.
The seven-day simple moving average (SMA-7) for Bitcoin fund volume has plummeted to 36 million, the lowest figure recorded since late September. This significant drop follows a peak in mid-November when volume reached approximately 145 million. The spike in November was associated with increased price volatility and greater institutional involvement, but since then, trading activity has consistently decreased, retracing back to levels seen earlier in the autumn.
At present, Bitcoin prices are stabilizing between $87,500 and $87,600, indicating that reduced trading activity is not resulting from forced selling but rather from diminished participation.
CryptoQuant”s insights indicate a marked shift in market dynamics. The post-November decline in fund volume signals that larger players are either scaling back their exposure or temporarily stepping away from active trading. This trend implies that institutions are refraining from deploying capital aggressively in either direction, suggesting a transition from high-conviction trading to a more cautious approach focused on capital preservation.
With fund volume at this compressed level, overall market liquidity has also diminished. Historically, periods of low volume increase the susceptibility of prices to large orders, making the market more sensitive to even minor shifts in supply or demand.
Such conditions often presage significant directional movements, not due to immediate momentum but because the market becomes more structurally fragile. In this context, even slight changes can lead to considerable price fluctuations.
It is important to note that the current data does not indicate panic or capitulation among market participants. Instead, it reflects a natural exhaustion following the intense trading activity witnessed in November. Institutional investors appear to be adopting a more passive stance, allowing Bitcoin to operate within a quieter trading environment.
According to the report, this relative silence is significant. A rebound in fund volume from these depressed levels could serve as a catalyst for defining the next major trend for Bitcoin. For the time being, the prevailing characteristic of the market is not determined direction but rather a lack of conviction as Bitcoin enters 2026 with participation at its lowest in several months.
