Bitcoin (BTC) surged on Wednesday, increasing by 7.5% in the last 24 hours, trading above $93,000, as analysts anticipated new peaks.
This surge comes amid unprecedented capital inflows, an increase in realized cap, and a drop in volatility, indicating a shift in market structure, according to a recent joint report by Glassnode and Fanara Digital.
Key takeaways:
Bitcoin has garnered a record $732 billion in new capital since the low of the 2022 cycle.
Overcoming the $93,000 resistance is essential for maintaining the recovery.
Bitcoin attracts $732 billion in new capital
Bitcoin’s recent downturn saw it decline by as much as 36% from its all-time high of $126,000 achieved on October 6, raising concerns of a potential crypto winter.
However, new findings from Glassnode and Fanara Digital reveal that Bitcoin has attracted over $732 billion in net new capital since the cycle low in 2022.
“The 2022–2025 cycle alone has brought in more capital than all prior cycles combined,” stated the report, elevating the realized cap to approximately $1.1 trillion while the spot price soared over 690% to $126,000 at its peak from $16,000.
Related: Bitcoin surges to $93K after Sunday flush, as analysts eye $100K
This reflects the “significant impact of institutional adoption and the rise of regulated investment vehicles, such as spot ETFs,” the report highlighted, adding:
“The level of capital inflows during this cycle indicates a structural change in Bitcoin’s market depth and investor makeup.”
Bitcoin’s realized cap represents the actual capital injected into all BTC across the network and is typically the first metric to retract in bear markets. The chart suggests this is not happening.
In the meantime, Bitcoin’s long-term volatility has nearly halved, decreasing from 84.4% at the peak of the 2021 bull market to 43%, emphasizing a persistent decline in systemic volatility.
This reduction indicates “Bitcoin’s increasing market depth and participation from institutions” through ETFs and treasury firms, as noted in the report, which added:
“This reduction in volatility signifies Bitcoin’s shift toward being a more institutionally anchored asset.”
Generally, bear markets initiate with increasing volatility and reduced liquidity, not when volatility is in a long-term structural decline.
The report also reveals that demand for spot Bitcoin ETFs has been “remarkable” since their debut in January 2024. These investment vehicles now hold about 1.36 million BTC, valued at around $168 billion in assets under management, which represents approximately 6.9% of the circulating supply.
“This reflects the rising incorporation of Bitcoin into institutional portfolios and underscores the crucial role ETFs now play in shaping the market structure.”
Bitcoin price must break $93,000
Data from Cointelegraph Markets Pro and TradingView indicated that BTC was trading below a high-ask liquidity region.
“BTC encountered significant resistance at $93K last week, but as the price attempts to breach this level again today, we’re observing large short-liquidation clusters forming,” Glassnode noted in a post on X on Wednesday, adding:
“Short liquidations can serve as fuel for upward movement, as forced buyers enhance momentum.”
Analyst Daan Crypto Trades identified the “local horizontal resistance” right above $93,000, also suggesting that converting this region into a new support zone is crucial for driving the BTC/USD pair toward $98,000.
The BTC price has achieved a “higher high and a higher low, thus technically, the market structure is returning to bullish in this time frame,” the analyst observed, adding:
“$97K-$98K remains a significant area in terms of liquidity. That would be in focus if this current level breaks.”
As reported by Cointelegraph, a growing number of analysts are optimistic about Bitcoin’s recovery, with the Bollinger Bandwidth indicator providing optimism for a 2023-like BTC price surge as the year concludes.
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.
