Bitcoin experienced a dramatic turnaround after plummeting to $84,000 recently, rapidly rebounding to approximately $93,000. This sudden surge signifies not only a significant price movement but also marks a historic moment with the return of institutional investors to the market. Analyses reveal that the strongest buying trend in three years has been observed in the perpetual contracts market.
The Historical Market Transition
According to data shared by crypto analyst CoinCare, on December 2, the buy-sell ratio on perpetual futures exchanges rose to 1.17, hitting its highest value since January 2023. This ratio indicates that aggressive buying volumes have surpassed selling volumes, confirming that buyers are taking the lead in the current bullish cycle. CoinCare regards this as a significant sign that the markets are entering an expansion phase, emphasizing that structural capital flows have started to increase.
A major catalyst for this rise was investment giant Vanguard offering its over 50 million brokerage clients the opportunity to trade spot in Bitcoin, Ethereum, XRP, and Solana ETFs. This move, led by former BlackRock executive and new CEO Salim Ramji, considerably widened the potential capital pool. Bloomberg analyst Eric Balchunas pointed out that Vanguard clients have “immediately and collectively” moved to buy. Additionally, improved macro liquidity conditions are creating a more favorable environment for risky assets like Bitcoin.
Market Expansion and Altcoin Impact
Bitcoin’s swift recovery not only influenced BTC’s price but also pushed Ethereum’s price above $3,000 and generated double-digit gains for major altcoins like Solana and Cardano. XWIN Research Japan analysts suggest that even a small portion of Vanguard’s $11 trillion assets under management flowing into crypto ETFs could inject tens of billions of dollars of liquidity into the sector. This amount could surpass the total inflows of US spot ETFs in their first year and symbolize the transition of crypto from a niche investment area to an institutionally recognized market.
Nevertheless, analysts emphasize that systemic risks in the market are still being monitored despite the uptrend, as evidenced by the recent slight pullback. Particularly, financial stress in Japan emerges as a risk element that needs careful attention. All these indicators combined suggest that the current bullish cycle is far from over, with institutional ETFs, increased participation, and improving liquidity conditions supporting the expansion process.
Bitcoin and the crypto market are currently at a crucial turning point. The growing interest of institutional investors and new ETF implementations indicate that the market has potential for further growth in the coming months. For investors, this process presents an opportunity that necessitates a careful balance of risk and observation.