According to blockchain analytics firm Glassnode, Bitcoin’s latest market cycle is exhibiting “atypical” characteristics. The firm highlights that Bitcoin (BTC) has matured into a global asset with deep liquidity, allowing investors to trade at all hours, even when traditional markets are closed.
This accessibility has positioned Bitcoin uniquely in the financial arena, especially during macroeconomic uncertainty.
Bitcoin’s Increasing Global Influence
According to Glassnode, Bitcoin has become a store of value and a medium of exchange. It cites a net capital inflow exceeding $850 billion and a daily economic volume of nearly $9 billion.
Further, nation-states such as Bhutan and El Salvador have integrated Bitcoin into their financial strategies, while discussions in the US government continue to explore Bitcoin’s role as a potential strategic reserve asset.
The report also acknowledges Bitcoin’s market capitalization of $2 trillion, ranking as the world’s seventh-largest asset, surpassing silver, Saudi Aramco, and Meta. However, the pioneer crypto’s reaction to global events, such as President Donald Trump’s tariffs, is a key highlight.
Over the weekend, Bitcoin and other digital assets sharply declined in response to the Trump administration’s new tariffs on Mexico, Canada, and China. With traditional markets closed, Bitcoin experienced significant volatility.
Bitcoin fell from $104,000 to below $93,000, while both Ethereum and Solana lost over 20% at the time.
According to Glassnode, this reaction reflects Bitcoin’s role as a 24/7 global asset that investors turn to in response to macroeconomic developments. This aligns with Robert Kiyosaki’s outlook that the recent correction was a prime wealth-building moment amid global economic uncertainty.
Institutional Investors Driving Market Trends
Moreover, Bitwise CIO Matt Hougan, suggested that President Trump’s recent executive order could further influence Bitcoin’s market cycle. The order affecting financial regulations and digital assets may introduce new dynamics to Bitcoin’s institutional adoption.
“It [the executive order] created a pathway for the largest Wall Street banks and investors to move aggressively into the space. However, the full mainstreaming of crypto—the one contemplated by Trump’s executive order, where banks custody crypto alongside other assets, stablecoins are integrated broadly into the global payments ecosystem, and the largest institutions establish positions in crypto—I’m convinced will bring trillions,” Hougan wrote.
Indeed, the week following the digital asset stockpile executive order, crypto inflows soared to $1.9 billion. This added to a series of weeks with positive flows into digital asset investment products for January.
Glassnode notes a shift in Bitcoin’s investor base, with institutional investors playing an increasingly significant role. The introduction of US spot Bitcoin ETFs (exchange-traded funds) has facilitated regulated access to the asset, leading to over $40 billion in net inflows. It has also contributed to combined assets under management (AUM) exceeding $120 billion in just one year.
“If we dive into the IBIT investor cap table (as noted by analyst TXMC), we can see clear signs of heightened demand from institutional investors. This provides further evidence that Bitcoin is attracting an increasingly sophisticated investor base,” an expert in the report read.
BTC is More Resilient and Less Volatile, Glassnode Says
Further, the report references the collapse of FTX in late 2022. Since then, Bitcoin dominance has been on an uptrend, rising from 38% to 59%. This indicates a preference among investors for Bitcoin over altcoins.
Against this backdrop, the report acknowledges analysts’ view of Bitcoin’s clear monetary hedge narrative, noting that wider accessibility through ETFs contributes to this trend.
“Comparing market capitalizations from the 2022 lows: Bitcoin grew from $363 billion to $1.93 trillion (5.3x increase). Meanwhile, altcoins (excluding Ethereum and stablecoins), increased from $190 billion to $892 billion (4.7x increase),” the report alluded.
Growth in Bitcoin and Altcoin Market Caps. Source: Glassnode
Despite this divergence, Bitcoin and altcoins remain correlated. A reversal in Bitcoin dominance could signal a capital rotation back into the altcoin sector, kickstarting the colloquial “alt season.”
As BeInCrypto reported, on-chain data also reveals that Bitcoin’s current cycle has been more stable than previous ones. Realized losses during market pullbacks have remained relatively minor, and volatility has been lower than in past bull markets.
Analysts attribute this to a more knowledgeable investor base, particularly among retail holders. They accumulate during corrections rather than panic selling at the top. Nevertheless, the presence of institutional investors, regulatory developments, and increased liquidity have all contributed to a more structured and mature Bitcoin market.
