Bitcoin has attracted a massive $732 billion in net new capital since November 2022, surpassing all previous market cycles combined. The realized market cap has hit a record $1.1 trillion, signaling strong long-term demand and broad accumulation.

Bitcoin’s volatility has dropped significantly, from 84% to 43%, reflecting deeper liquidity and more stable institutional participation. U.S. spot Bitcoin ETFs now hold 1.36 million BTC worth approximately $168 billion, with daily trading volumes reaching $5–9 billion.

Despite a recent 30% price drop, analysts view Bitcoin’s current market as a mid-cycle reset rather than a crash. The influx of $732 billion in new capital since the 2022 low has pushed Bitcoin’s realized market cap to a record $1.1 trillion.

The recent surge in institutional and ETF-driven investment has propelled Bitcoin to new heights, with a realized market cap of $1.1 trillion. The one-year volatility has halved, indicating deep liquidity and strategic buying patterns by investors.

Bitcoin’s on-chain activity rivals major payment networks, settling about $6.9 trillion in transactions over the past 90 days. Daily spot trading volumes have surged to $8–22 billion, while futures open interest sits at a record $67.9 billion, indicating strong institutional participation.

Experts believe the recent pullback in Bitcoin’s price is a temporary correction, supported by stable ETF inflows, continued accumulation by long-term holders, and resilient mining operations. The market structure is maturing, with price swings smoothed by professional liquidity.

Institutional demand for Bitcoin is growing, with options on BlackRock’s Bitcoin ETF ranking among the most-traded contracts in the US equity market. Futures activity is heavy, with CME’s Bitcoin futures and other regulated derivatives supporting significant volumes and open interest.

The market is seeing a surge in tokenized real-world assets, indicating growing institutional interest in regulated crypto exposure. Large investors are driving the narrative, allocating to crypto assets via corporate treasuries and funds, signaling a strategic shift in capital allocation.

Consensus forecasts among analysts skew bullish, projecting a 2026 rally tied to Federal Reserve easing and continued ETF adoption. Despite headline volatility, data from on-chain and institutional sources show resilience and support for a mid-cycle reset in the Bitcoin price.

Read more at Yahoo Finance: Bitcoin’s $732B Capital Inflow Proves This Isn’t Crypto Winter But a Mid-Cycle Reset