Recent data from Glassnode indicates that Bitcoin’s latest surge is driven by institutional interest and consistent on-chain activity, rather than mere speculation.
In the October 8 edition of its “The Week On-chain” newsletter, the analytics company reported that Bitcoin’s climb to a new peak near $126,000 earlier this week was fueled by robust ETF inflows and ongoing accumulation from smaller investors.
This movement propelled Bitcoin into uncharted price territory before it settled around $122,500 on Wednesday.
ETF Interest Resurfaces
Glassnode highlighted that over $2.2 billion was invested in U.S. spot bitcoin ETFs within just one week, marking one of the most significant waves of institutional purchasing since April.
This influx countered the minor withdrawals observed in September and helped absorb much of the available supply on exchanges.
The firm noted that historically, the fourth quarter has been favorable for Bitcoin as professional investors often adjust their portfolios towards higher-risk assets like cryptocurrencies and small-cap stocks. It suggested that continued ETF demand could help stabilize prices as year-end approaches.
Accumulation Led by Smaller Investors
On-chain data from Glassnode reveals that mid-sized holders—wallets with between 10 and 1,000 BTC—have been key buyers during this recent price increase.
These accounts have steadily increased their holdings while larger whales have taken moderate profits, creating what Glassnode described as a “more organic accumulation phase.”
Ninety-seven percent of circulating supply is now profitable—a level typically seen in late-stage bull markets but not yet indicating exhaustion. The report identified the $117,000–$120,000 range as crucial support based on approximately 190,000 BTC transacted there—a zone where new buyers might emerge if prices decline.
Caution Due to Leverage
While describing market conditions as “robust but maturing,” Glassnode warned about sharply rising futures open interest and funding rates. Annualized funding now exceeds 8%, suggesting an increase in leveraged long positions which could introduce short-term instability.
Nonetheless, they argued realized profits remain controlled compared to previous market peaks—indicating investors are rotating holdings instead of hastily exiting.
A Structurally Resilient Market
Overall ,Glass node asserted bitcoin’s structure remains solid,supported by institutional demand ,deep liquidity,and widespread accumulation .As longas ETF inflows continue,the rally may extend further into Q4,reaffirming its status asthe most structurally supported uptrendin years .