Crypto News Today: 97% of Bitcoin Supply Now in Profit as ETF Inflows Hit $2.2B, According to Glassnode

Key Takeaways97% of Bitcoin’s circulating supply is now in profit, according to Glassnode.The latest rally was driven by $2.2 billion in spot Bitcoin ETF inflows and steady accumulation from smaller holders.Analysts warn that leverage and funding rates above 8% could fuel short-term volatility despite strong fundamentals.Bitcoin Rally Fueled by Institutional Demand, Not SpeculationBitcoin’s surge to new all-time highs near $126,000 is being driven by institutional capital and organic on-chain accumulation rather than speculative hype, according to blockchain analytics firm Glassnode.In its Oct. 8 “Week On-Chain” report, Glassnode said Bitcoin’s breakout past $120,000 was underpinned by $2.2 billion in weekly ETF inflows and continued buying from mid-sized investors.Following the move, Bitcoin briefly entered price discovery before consolidating around $122,500 on Wednesday.ETF Inflows Hit $2.2 Billion in One WeekThe report highlights that U.S.-listed spot Bitcoin ETFs attracted more than $2.2 billion in net inflows over the past week — one of the strongest waves of institutional accumulation since April.These inflows reversed September’s mild redemptions and helped absorb much of the available supply on exchanges.Glassnode added that Q4 is historically Bitcoin’s strongest quarter, as professional investors rebalance portfolios toward high-performing and risk-on assets such as crypto. Sustained ETF demand could continue to anchor prices into year-end, the firm said.Smaller Holders Drive On-Chain AccumulationGlassnode’s on-chain data shows that mid-tier holders — wallets with between 10 and 1,000 BTC — have been the main force behind Bitcoin’s latest leg higher.While some larger whales took profits near the recent all-time highs, smaller and mid-sized addresses steadily accumulated BTC, creating what the firm described as a “more organic accumulation phase.”Nearly 97% of Bitcoin’s circulating supply is now held in profit, a level typically seen during the later stages of bull markets. However, Glassnode said current metrics show no signs of exhaustion, suggesting further upside potential.The report identified the $117,000–$120,000 zone as a key area of on-chain support, where approximately 190,000 BTC were last transacted — a price region where new buyers are likely to step in if markets pull back.Rising Leverage Poses Short-Term RiskDespite the strong structural setup, Glassnode cautioned that the rapid rise in futures open interest and funding rates exceeding 8% could increase short-term fragility.High funding rates typically indicate excessive leverage in long positions, which can magnify volatility during sudden price corrections.Still, Glassnode noted that realized profits remain contained compared to previous market tops, implying that investors are rotating positions rather than exiting the market.Bitcoin’s Structural Strength PersistsOverall, Glassnode concluded that Bitcoin remains fundamentally strong, supported by:Deep institutional demand via ETFs,Steady on-chain accumulation, andDeclining exchange balances signaling reduced sell pressure.“As long as ETF inflows persist,” the firm wrote, “Bitcoin’s rally could extend further into the fourth quarter, reinforcing its position as the most structurally supported uptrend in years.”