Bitcoin Strengthens Rally on Institutional Flows

Bitcoin (BTC) extended its recent climb towards fresh record highs, surpassing $113,800 on Thursday, signaling sustained buying interest. The strength is attributed to a fresh injection of institutional capital, highlighted by Binance capturing nearly half of the market’s trading volume, while retail inflows decelerated.

Key Takeaways

Bitcoin’s price ascended to new all-time peaks around $113,800.
Binance’s spot market share surged past 49%, indicating its dominance.
A key liquidity indicator, the Stablecoin Supply Ratio (SSR) MACD, signaled a momentum shift consistent with new capital inflows.
Retail investor funding into the cryptocurrency dropped significantly.

Bitcoin (BTC) entered a renewed phase of its upward trajectory amid signs pointing to continued liquidity inflows into the market. Key metrics suggest the recent rally could gather further steam.

Bitcoin price chart showing recent surge towards new highs. — *Bitcoin One-Day Chart. Source: Cointelegraph/TradingView*

Bullish Liquidity Signal

Crypto analyst SunflowerQuant highlighted the bullish divergence in the Stablecoin Supply Ratio (SSR) Moving Average Convergence Divergence (MACD). This indicator crossed over bullish, a recurring pattern historically preceding capital inflows and bullish price momentum for Bitcoin. The signal suggests significant sidelined capital within stablecoins could quietly re-enter the market.

Binance’s most recent on-chain data underscores the scale of this potential inflow. The exchange cataloged a record $31 billion in USDT and USDC reserves last month. This mammoth reserve represents a substantial pool of capital potentially primed for allocation into Bitcoin and other altcoins.

Chart showing correlation between Bitcoin price and Stablecoin Supply Ratio. — *Bitcoin and Stablecoin Supply Ratio. Source: CryptoQuant*

Retail vs. Whales

Trading activity data reveals a shift in the market’s driving force. CryptoQuant noted a considerable decline in exchange retail inflows, falling below $12 billion – a level unseen since April 2025. This contraction aligns with the recent price surge and simultaneously points away from retail investors as the primary source of volatility.

This background dip coincided perfectly with Binance clinching greater than 50% dominance in the spot market before the upward breakout. Elevating its liquidity to nearly half the market, Binance’s robust infrastructure likely attracted substantial institutional and large-volume buyer flows.

Illustration of Bitcoin trading volume dominance by specific cryptocurrency exchanges. — *Exchange Volume Share for Bitcoin. Source: CryptoQuant*

The combination of a leading liquidity indicator diverging higher, significantly lower reported retail inflows coupled directly with an exchange surge in volume, paints a clear picture: institutional capital is stepping onto center stage, potentially surpassing retail in dominance for driving price discovery in Bitcoin.

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This article does not constitute investment advice. Readers should perform their own research before making any financial decisions involving cryptocurrency, digital assets or NFTs.