• Bitcoin hits a fresh all-time high near $126K, backed by record ETF inflows and stronger spot demand.
• On-chain data shows rising network activity and healthy profit realization, signaling sustainable growth.
• Futures and options markets reflect elevated optimism, though rising leverage could spark short-term volatility.

Bitcoin has reached a new all-time high above $125,000, marking a major milestone in its 2025 bull cycle. The rally has been fueled by record ETF inflows, strong spot demand, and increasing on-chain activity, signaling that this uptrend is supported by real market participation rather than speculation.

Data from Glassnode shows Bitcoin traded near $125.5K after breaking through the $114K–$117K supply zone, a level that had previously capped its momentum.

ETF inflows have been one of the biggest drivers of this breakout. Over $2.2 billion has flowed into U.S.-listed Bitcoin ETFs in just a week, reversing September’s outflows and confirming renewed institutional interest.

Daily spot trading volumes have climbed above $26 billion, highlighting deep liquidity and growing participation from traditional investors. This structural inflow suggests that Bitcoin’s rally is underpinned by strong conviction, not short-term hype.

Bitcoin Activity Jumps As 97% Of Coins Stay In Profit

Glassnode unveils distinct strength on the chain side, too. Entity-depleted transfer volumes have surged by 39%, and active addresses have risen by 11%, with enhanced network activity and transactional growth.

Well over 97% of all circulating supply is presently in profit, as the Net Unrealized Profit/Loss ratio reached as high as 5.7%. Those figures underscore that the overwhelming majority of holders are enjoying the surge, with the selling pressure still kept low and well-mopped-up by fresh inflows.

Micro and small investors, wallets with between 10 and 1,000 BTC, have dominated this bout of accumulation, with bigger holders decreasing their selling. This natural accumulation has brought stability to the market.

Present key support is around the $117K level, previously the site of accumulated stocks totalling approximately 190,000 BTC. Any backtracking into the zone should be met with new buying as investors protect their lucrative holdings.

Derivatives and Options Indicate Controlled Euphoria

In the derivatives market, the futures open interest increased by 7.7% to $47.8 billion as leveraged exposures rise. Funding rates have surpassed the level of 8% per annually, with robust demand for the longs. But such levels commonly sit before the short-term deflation periods as the exposures get rebalanced.

In the options, the 25-delta skew is steering towards the neutral, indicating diminished hedging on the downside and increased call buying, which is bullish. Implied volatility has increased marginally, implying that traders are gearing up for further appreciation but in a contained framework.

Also Read: Bitcoin (BTC) Shatters Records at $125,750 — Is $200K Next?