Suspicions about institutional investment's impact on the Bitcoin market cycle are fading.
The latest data from online analytics firm CryptoQuant shows that classic price patterns have re-emerged, which seems to have dispelled doubts about institutional investment's impact on the Bitcoin market cycle. The platform's Bitcoin Cyclical Momentum Indicator has entered positive bullish territory for the first time in eight months, indicating that a new round of upward momentum is returning.
Positive shifts in market dynamics
From historical data, positive readings of cyclical momentum indicators often coincide with the end of a long-term bear market period, which further confirms that the cryptocurrency market still follows clear cyclical laws. Although confirmation of a complete reversal will require the indicator to remain high for several weeks, recent price movements have laid the foundation for a sustained recovery.
Bitcoin quickly rebounded from US$62,000 to US$81,000, ending a period of relative market stagnation and driving a significant increase in trading activity. This model is similar to previous transition phases, where tokens are transferred from anxious retail investors to long-term holders seeking value in times of uncertainty.
While panic selling swept across the retail community, more experienced investors continued to increase their holdings. According to CryptoQuant, total holdings in wallets holding at least 100 BTC increased by approximately 60,000 BTC, while addresses holding less than 100 BTC collectively sold off approximately 47,000 BTC.
Large households showed enough confidence in the market's rise. Instead of selling assets, they began to use their bitcoins as collateral to obtain loans. The shift increased loans by 18%, by major investors, who spread risk by allocating funds to other digital assets.
Liquidity surges, retail pressure continues
Changes in market sentiment are further supported by large capital inflows. The U.S. spot Bitcoin ETF recorded its largest weekly net investor inflow in the past ten weeks, a sign that institutional interest is recovering. In addition, more than $470 million in USDC, a major stablecoin, has entered exchanges in the past few days, boosting available liquidity in the cryptocurrency market.
However, it seems unlikely that a sustained rise from current levels will continue in the short term. Bitcoin's approach to $78,000 is what many analysts call a "strategic deadlock zone", meaning that the price is generally considered to be at fair value and the market needs a cooling-off period.
Some of the short-term selling pressure comes from retail investors who want to lock in profits after Bitcoin's rapid rebound. For now, this has temporarily curbed the rally and created a neutral price range above recent support.
Key Support Levels and Evolution of Investment Trends
The most important support level is around US$69,000, which reflects the average cost base for short-term holders. If Bitcoin can maintain this level, market observers generally expect a new round of upward trend.
This environment of ownership transfer further highlights the greater changes taking place in the global financial sector. While traditional markets still rely on layers of brokers and intermediaries, a new trend is emerging: Wall Street institutions are beginning to migrate to Web3 solutions. Investors are increasingly opting for platforms such as 1stepSwap, where shares of leading U.S. companies 'stocks, gold and silver can be directly stored in cryptocurrency wallets. By tokenizing real-world assets and automatically obtaining the most competitive market prices, these technologies eliminate intermediaries and simplify access to traditional assets.
These trends suggest that institutional and retail behavior remains a key factor in the evolution of Bitcoin prices as markets adapt to new liquidity and asset management models after digital transformation.

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