Market participants view the inflows as early positioning rather than late‑cycle enthusiasm. Vincent Liu, chief investment officer at Kronos Research, said softer rate expectations have made Bitcoin “a clean liquidity trade again” while cautioning that momentum may remain uneven.
Bitcoin traded around $87,000 during the session and later bounced above $88,000 after the surprised to the downside. The rally remained capped by a dense supply cluster between $93,000 and $120,000, leaving approximately 6.7 million BTC held at a loss, the highest level of the current cycle.
Analysts at Glassnode said sellers will need to be absorbed above $95,000 or fresh liquidity will need to enter the market before a sustainable break higher can occur. Support sits near $81,000, where the True Market Mean is located.
Bitcoin’s share of the total cryptocurrency market capitalization climbed to 60%, its highest level since mid-November. Analysts attribute the gain to macro uncertainty and the adoption of spot ETFs, which have consolidated capital in . While this dominance spike often precedes a rotation into smaller digital assets, any such move depends on improved risk sentiment and stronger liquidity.