Bitcoin’s latest breakout has been fueled by institutions and stable on-chain demand instead of speculation, according to new data from glassnode.
In the October 8 edition of “The Week On-chain” NewsletterAnalytics firm said the climb of Bitcoin to a new full time near $ 126,000 earlier this week was strengthened by the strong ETF flow and constant accumulation from smaller market participants.
The move pushed Bitcoin into fresh price discovery before combining near $ 122,500 on Wednesday.
ETF demand returns
Glassnode said more than $ 2.2 billion has been flowing to US Bitcoin areas within a single week, which has marked one of the strongest waves of institution purchases since April.
The flowers reversed the gentle redemption found in September and helped absorb many of the available supplies in the exchanges.
The firm noted that the fourth quarter is history that the most favorable Bitcoin period, as professional investors often re-balance portfolios towards higher risk properties such as crypto stocks and small caps.
The sustainable demand of the ETF, it added, could continue the anchor prices as the end of the year approached.
Smaller holders that drive accumulation
Glassnode’s on-chain data shows that mid-tier holders, or wallets containing between 10 and 1,000 BTC, have become the main consumer behind the latest legs higher.
These accounts seem to continue to increase their balances as larger whales gain moderate income, creating what the firm described as a “more organic stage of accumulation.”
Nearly 97% of the circulating supply is now in revenue, a level that usually marks bull cycles of the final stage but has not yet showed signs of fatigue.
The report emphasized the $ 117,000- $ 120,000 zone as a major on-chain support area, with approximately 190,000 BTC that was last transacted there-a price range at which new buyers could step on if the markets returned.
Leverage adds a note of caution
As Glassnode describes market conditions as “stable but mature,” it warns that futures open interest and funding rates both rise dramatically. It is noted that the annual fund is now exceeding 8%, suggesting a buildup of leveraged long positions that could increase short -term damage.
Although, the glassnode argued that the realized income remained controlled compared to the earlier top of the market, which signified that investors were rotating handles instead of rushing to exit.
A structural strong market
Generally, Glassnode said the bitcoin structure remains sound, supported by institution’s demand, deep liquidity, and extensive accumulation.
The firm concluded that as long as the ETF flow continues, the Bitcoin rally can further expand in the fourth quarter, strengthening its position as the most structural support of the years.
