Bitcoin’s latest breakout is driven by institutions and a constant demand for chain rather than speculation, according to new data from Glassnode.
In the October 8th edition of his “The Week On-Chain” newsletter, the analysis company said Bitcoin’s wave to a new highlight of all the time near $ 126,000 earlier this week was powered by strong ETF flow and consistent accumulation from smaller market participants.
The move pushed Bitcoin into fresh price discovery before consolidating nearly $ 122,500 Wednesday.
Etf -Inquiry will return
Glassnode said that more than $ 2.2 billion flowed into us spot Bitcoin ETFs within a single week, marking one of the strongest waves of institutional purchases since April.
These influxes turned the mild redemptions seen in September and helped absorb much of the available supply on stock exchanges.
The company noted that the fourth quarter has historically been Bitcoin’s most favorable season, as professional investors often rebalancing portfolios against higher risk assets, such as crypto and small CAP shares.
Persistent ETF demand, added it, could continue to anchor prices as the end of the year.
Smaller holders drive accumulation
Glassnode’s data on the chain shows that holders of mid -levels or wallets containing between 10 and 1,000 BTC have been the most important buyers behind the latest legs higher.
These accounts have apparently steadily increased their balance, while larger whales have made moderate profits, creating what the company described as a “more organic accumulation phase.”
Nearly 97% of circulating supply is now in excess, a level that typically marks bull cycles at a late stage, but does not yet show signs of exhaustion.
The report highlighted the $ 117,000- $ 120,000 zone as an important area of on-chain support, with approx. 190,000 BTC last traded there one price range where new buyers can step in if the markets withdraw.
Gearing adds a note of caution
While Glassnode described market conditions as “robust but maturation”, it warned that Futures’s open interest rates and the financing rates have both risen sharply. It noted that the annual funding now exceeds 8%, suggesting that a build -up of geared long positions that could increase the short -term fragility.
Nevertheless, Glassnode claimed that realized profits remain controlled compared to previous market tops, which signaled that investors rotate possessions instead of rushing to end.
A structurally strong market
Generally, Glassnode remains that Bitcoin’s structure remains healthy, supported by institutional demand, deep liquidity and broad-based accumulation.
The company concluded that as long as the ETF flow persists, Bitcoin’s Rally could extend further into the fourth quarter, strengthening its position as the most structurally supported Uptrend this year.
