Bitcoin Fund Volume Drops to 36 Million as Institutions Step Back
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 01 2026- Volume Plunge: Bitcoin fund volume (7-day simple moving average) has dropped to 36 million, marking its lowest level since late September, indicating a significant reduction in institutional participation and a shift to a low-liquidity market phase.
- Behavioral Shift: Following the November peak, fund volume has steadily declined, suggesting that large players have reduced exposure or paused trading, transitioning the market from high-conviction flows to capital preservation and observation, which may impact future price movements.
- Liquidity Decline: With fund volume compressed to 36 million, overall market liquidity has decreased, and historical data shows that periods of reduced volume typically increase price sensitivity to large orders, potentially leading to significant volatility.
- Confidence Erosion: While the data does not indicate panic or capitulation, it suggests that prior momentum has exhausted, with institutional participants opting to stand aside after November's volatility, resulting in the market entering 2026 with the weakest participation in months.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
