Bitcoin (BTC) prices rose on Wednesday, climbing 7.5% within 24 hours, with trading prices breaking through $93,000, as analysts expect new highs.
Glassnode and Fanara Digital's latest joint report indicates that against the backdrop of record capital inflows, an increase in realized market capitalization, and a decrease in volatility, these signs suggest a fundamental change in market structure.
Key points:
Since the cycle low in 2022, BTC has attracted a record $732 billion in new capital.
Breaking through the $93,000 resistance level is crucial for maintaining the market recovery momentum.
The recent sell-off of BTC has seen it pull back as much as 36% from the historical high of $126,000 set on October 6, raising concerns about a crypto winter.
Nevertheless, the latest research from Glassnode and Fanara Digital shows that since the cycle low in 2022, BTC has attracted over $732 billion in net new capital.
"The capital attracted during the 2022-2025 cycle alone exceeds the total of all previous cycles combined," the report emphasizes, driving the realized market capitalization up to about $1.1 trillion, while spot prices surged over 690% from $16,000 to peak at $126,000.
The report notes that this reflects the "profound impact of institutional adoption and the emergence of regulated investment vehicles (such as spot ETFs)," and adds:
BTC's realized market capitalization is a key metric for measuring the actual invested capital of all BTC in the network, which is typically the first indicator to shrink during bear markets. The chart above indicates that this is not the case currently.
At the same time, BTC's long-term volatility has nearly halved, dropping from 84.4% during the peak of the 2021 bull market to 43%, highlighting a continued downward trend in systemic volatility.
The report states that this downward trend reflects "the growth of BTC market depth and institutional participation through ETFs and financial companies," and further states:
Typically, bear markets begin with rising volatility and decreasing liquidity, rather than during a phase of long-term structural decline in volatility.
The report also shows that since the launch of the spot Bitcoin ETF in January 2024, demand has been "exceptionally strong." These investment products currently hold about 1.36 million BTC, with assets under management reaching $168 billion, accounting for approximately 6.9% of the circulating supply.
Data from Cointelegraph Markets Pro and TradingView shows that BTC's trading price is currently below the high sell order liquidity area.
Glassnode posted on the X platform on Wednesday, stating: "BTC faced strong resistance at the $93,000 level last week, but as the price attempts to break this level again today, we are observing a significant cluster of short position liquidations forming." The agency further added:
Analyst Daan Crypto Trades is closely monitoring the "local level resistance" above $93,000, and he believes that turning this area into a new support zone is crucial for pushing the BTC/USD trading pair towards $98,000.
The analyst noted that BTC prices have formed "higher highs and higher lows, so from a technical perspective, the market structure has returned to a bullish trajectory within this timeframe." He added:
As Cointelegraph previously reported, an increasing number of market analysts are optimistic about BTC's recovery prospects, with the Bollinger Band width indicator providing technical support for a significant surge in BTC prices similar to 2023 before the end of the year.
Related: Analyst: Strategy Bitcoin (BTC) purchase volume has significantly decreased, companies are preparing for a bear market.
This article does not constitute any investment advice or recommendation. All investment and trading activities carry risks, and readers should conduct their own research before making decisions.
Original article: “Bitcoin (BTC) adds $732 billion in new capital this cycle, market structure transforms”
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