Bitcoin has climbed above $123,000 in early Thursday trading in Asia, rebounding from a recent dip to $120,000. Analysts remain split on the drivers behind the rally: QCP Capital interprets it as capital rotation from overextended AI equities into “credibility hedges” like BTC and gold, while Glassnode and CryptoQuant point to strong ETF inflows and steady accumulation from mid-tier holders.
On-chain data indicates institutional and mid-tier buying is supporting the uptrend. Glassnode highlights that ETF inflows have converted prior resistance into new support, and CryptoQuant notes that on-chain profit-taking remains moderate, signaling room for further gains. Yet, high futures open interest and funding rates exceeding 8%, coupled with call-heavy options positioning, suggest short-term fragility—a scenario analysts describe as “strong trend, weak hands.”
Market Snapshot:
- BTC: Near $123,500, up 1.5% in 24 hours, bolstered by institutional inflows and miner activity.
- ETH: Holding at $4,516, supported by ETF interest and anticipation of the Fusaka upgrade in December.
- Gold: Surpassed $4,000, marking its 40th record high this year, fueled by geopolitical tensions, U.S. fiscal uncertainty, and ongoing central bank demand.
- Nikkei 225: Up 1.1%, led by a 10% gain in SoftBank following its $5.4 billion acquisition of ABB’s robotics unit, amid expectations of continued loose monetary policy under Japan’s incoming leadership.
The market shows structural strength, supported by ETF inflows and broad-based accumulation, but high leverage and crowded positions mean traders are watching closely for potential short-term corrections before the next upward move.
