Bitcoin (BTC) rose on Wednesday, gaining 7.5% over the last 24 hours to trade above $93,000, as analysts expected new highs.
This came amid record capital inflows, rising realized cap and decreasing volatility, which suggested a changing market structure, according to a new joint report from Glassnode and Fanara Digital.
Key takeaways:
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Bitcoin has attracted a record $732 billion in new capital since the 2022 cycle low.
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Breaking the resistance at $93,000 is crucial for sustaining the recovery.
Bitcoin attracts $732 billion in new capital
Bitcoin’s recent sell-off saw it draw down as much as 36% from its all-time high of $126,000 reached on Oct. 6, sparking fears of a crypto winter.
Still, new research by Glassnode and Fanara Digital found that Bitcoin has attracted more than $732 billion in net new capital since the 2022 cycle low.
“The 2022–2025 cycle alone has attracted more capital than all previous cycles combined,” the report said, pushing the realized cap to about $1.1 trillion, while the spot price rose by over 690% to $126,000 at the peak, from $16,000.
Related: Bitcoin surges to $93K after Sunday flush, as analysts eye $100K
This reflects the “profound impact of institutional adoption and the emergence of regulated investment vehicles, such as spot ETFs,” the report said, adding:
“The magnitude of capital inflows throughout the current cycle underscores a structural transformation in Bitcoin’s market depth and investor base.”
Bitcoin’s realized cap is a measure of the actual capital invested in all BTC across the network and is usually the first metric to contract in bear markets. The chart above suggests that this is not the case.
Meanwhile, Bitcoin’s long-term volatility has nearly halved, falling to 43% from 84.4% at the peak of the 2021 bull run, underscoring a sustained dampening of systemic volatility.
This decline reflects “Bitcoin’s growing market depth and institutional participation” through ETFs and treasury companies, the report noted, adding:
“This compression in volatility highlights Bitcoin’s transition toward a more institutionally anchored asset.”
Typically, bear markets begin with rising volatility and diminishing liquidity, not when volatility is in its long-term structural decline.
The report also shows that demand for spot Bitcoin ETFs has been “exceptional” since their launch in January 2024. These investment products now hold about 1.36 million BTC worth $168 billion in assets under management, which is roughly 6.9% of the circulating supply.
“This underscores the growing integration of Bitcoin within institutional portfolios and highlights the pivotal role ETFs now play in shaping market structure.”
Bitcoin price must break $93,000
Data from Cointelegraph Markets Pro and TradingView showed that BTC was trading below an area of high ask liquidity.
“BTC faced a strong rejection at $93K last week, but as price attempts to break through this level again today, we’re seeing large short-liquidation clusters forming,” Glassnode said in an X post on Wednesday, adding:
“Short liquidations can act as fuel for upside, as forced buyers amplify momentum.”
Analyst Daan Crypto Trades eyed the “local horizontal resistance” above $93,000, likewise suggesting that flipping this area into a new support zone was key to propelling the BTC/USD pair to $98,000.
The BTC price has made a “higher high and a higher low, so technically, the market structure is back to bullish on this time frame,” the analyst said, adding:
“$97K-$98K is still an interesting spot in terms of liquidity. That would be in play if this current area breaks.”
As Cointelegraph reported, more analysts are optimistic about Bitcoin’s recovery, with the Bollinger BandWidth indicator offering hope of a 2023-style BTC price surge into the year-end.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
