Bitcoin’s Surge Fueled by ETF Inflows and Steady On-Chain Accumulation, Says Glassnode
Bitcoin’s recent rally to near $126,000 has been driven by strong institutional ETF inflows and consistent accumulation from mid-tier holders, according to Glassnode. The cryptocurrency is now consolidating around $122,500, reflecting healthy market support.
ETF Demand Drives Momentum
U.S. spot bitcoin ETFs drew in $2.2 billion in a single week, marking one of the largest waves of institutional buying since April. These inflows reversed mild September redemptions and absorbed exchange supply. Historically, the fourth quarter is favorable for crypto, as investors rebalance portfolios toward higher-risk assets.
On-Chain Activity Highlights Organic Accumulation
Wallets holding 10–1,000 BTC have steadily increased their positions, while larger holders take moderate profits. Nearly 97% of circulating BTC is now in profit, a level often seen during late-stage bull cycles but showing no signs of exhaustion. Key on-chain support exists in the $117,000–$120,000 zone, where new buyers may step in during pullbacks.
Leverage Adds Caution
Futures open interest and funding rates have risen, with annualized funding exceeding 8%, signaling heightened short-term risk. However, realized profits remain controlled, indicating rotation rather than mass selling.
Strong Structural Outlook
Glassnode notes that bitcoin’s market structure remains solid, supported by institutional inflows, deep liquidity, and broad accumulation. As long as ETF demand continues, the rally could extend further into the fourth quarter, sustaining one of the most robust bitcoin uptrends in years.
