Bitcoin climbed above $123,000 in early Thursday trading in Asia, charting a strong recovery after earlier dips. Analysts are split on the rally’s drivers, with some viewing it as a macro rotation into “credibility hedges” like BTC and gold, while others caution that underlying leverage may leave the market vulnerable.
The surge has been fueled by record ETF inflows and steady accumulation from mid-tier holders. QCP Capital highlighted capital rotation from overextended AI equities into Bitcoin, framing the move as a hedge amid policy uncertainty. Glassnode noted that ETF demand and mid-tier buying have flipped previous resistance into support, while CryptoQuant pointed out that on-chain profit-taking remains moderate, indicating room for further upside.
Despite the optimism, elevated futures open interest, high funding rates above 8%, and a call-heavy options market suggest potential short-term fragility. Analysts describe the setup as “strong trend, weak hands,” where a leverage reset may be necessary before the next leg higher.
Market Snapshot:
- BTC: Trading above $123,000, recovering from recent pullbacks. Institutional inflows and whale accumulation underpin the trend.
- ETH: Holding near $4,516, supported by ETF inflows and anticipation of the December Fusaka upgrade.
- Gold: Surged past $4,000, marking its 40th record high this year, driven by geopolitical tensions and continued central bank demand.
- Nikkei 225: Rose 1.1%, led by a 10% gain in SoftBank following its $5.4 billion ABB robotics acquisition, buoyed by expectations of expansionist policies and loose monetary settings.
The market remains structurally bullish, though traders are watching closely for signs that a short-term correction could reset leverage and stabilize positioning before the next rally phase.
