Bitcoin On-Chain Profits Skyrocket as Nearly All Supply Turns Positive, According to Glassnode

Bitcoin Rally Driven by ETF Inflows and Steady On-Chain Accumulation, Glassnode Reports

Bitcoin’s recent surge to near $126,000 has been fueled by strong institutional demand and consistent accumulation from mid-tier holders, according to Glassnode’s latest “The Week On-chain” report. The cryptocurrency has since consolidated around $122,500.

Institutional ETF Inflows Boost Price
Glassnode highlighted that U.S. spot bitcoin ETFs saw $2.2 billion in inflows this week, one of the largest since April, offsetting modest September redemptions. These inflows absorbed exchange supply and reinforced price support. Historically, the fourth quarter favors bitcoin as professional investors reallocate into higher-risk assets, and continued ETF demand could extend the rally into year-end.

Mid-Tier Holders Drive Organic Growth
On-chain data show wallets holding 10–1,000 BTC were the main contributors to the latest price leg, steadily increasing balances while whales took moderate profits. Glassnode described this as a “more organic accumulation phase,” with 97% of circulating BTC now in profit—a level typical of late-stage bull markets but without signs of exhaustion. Key support sits between $117,000–$120,000, where roughly 190,000 BTC last changed hands.

Caution on Leverage
Futures open interest and funding rates have risen sharply, with annualized funding exceeding 8%, suggesting leveraged long positions could heighten short-term volatility. Despite this, realized profits remain controlled compared to prior market tops, indicating investors are rotating rather than exiting positions.

Market Structure Remains Strong
Glassnode concluded that bitcoin’s market structure is robust, supported by institutional inflows, deep liquidity, and broad-based accumulation. The firm noted that sustained ETF participation could continue driving the rally into the fourth quarter, marking one of the strongest structurally supported uptrends in years.