Bitcoin Reaches New Highs Driven by Institutional and On-Chain Demand
Recent data from Glassnode indicates that Bitcoin's latest price surge is driven by institutional activity and consistent on-chain demand rather than mere speculation.
- Price Surge: Bitcoin reached a new all-time high near $126,000, supported by strong ETF inflows and accumulation from smaller market participants.
- Institutional Demand: Over $2.2 billion flowed into U.S. spot Bitcoin ETFs in one week, reversing previous redemptions and absorbing available exchange supply.
- Accumulation by Smaller Holders: Mid-tier wallets (10 to 1,000 BTC) have been primary buyers, while larger holders took profits, leading to an "organic accumulation phase."
- Profit Levels: Approximately 97% of circulating supply is currently in profit, indicating a late-stage bull cycle without signs of exhaustion.
- On-Chain Support: The $117,000–$120,000 range serves as key support, with significant transaction volume suggesting potential buyer interest if prices decline.
- Market Caution: Rising futures open interest and funding rates signal increased leverage, which could introduce short-term market fragility.
- Market Structure: Despite leverage concerns, institutional demand and deep liquidity suggest a robust market structure.
Glassnode concludes that sustained ETF inflows could further bolster Bitcoin's rally through the fourth quarter, marking a structurally supported uptrend.