Bitcoin (BTC) surged past $111,000 for the first time on Thursday, marking a historic all-time high. The rally is being driven by strong capital inflows, particularly from institutional investors.

Despite concerns of a pullback, new data suggest that the Bitcoin market is still in a healthy upward phase.

Market Calm as Bitcoin Soars

According to a report by CryptoQuant, the funding rate, which is commonly used to gauge speculative pressure, shows a recent uptick in long positions, but the scale remains modest when compared to previous market tops.

Similarly, data on coins traded within a 1-week to 1-month timeframe, which is often used to assess short-term capital inflows, indicates that current inflows are relatively subdued, especially when measured against the rapid influxes seen during earlier bull runs.

Notably, short-term holders have shown little inclination to take profits amid the recent rally. In contrast to the heavy profit-taking that triggered a correction in March 2024 and again in November 2024, current selling pressure remains limited, even among large whale accounts.

Additionally, Bitcoin holdings in US-listed spot ETFs have also reached record highs, reflecting strong demand from investors. Overall, CryptoQuant believes that the current rally is being driven by sustainable factors as overheating signals remain relatively muted.

Institutions Take the Lead

Bitcoin’s latest ATH appears to be structurally different from past retail-driven rallies, according to experts. In a statement to CryptoPotato, Kushal Manupati, Binance’s Regional Growth & Ops Lead of South Asia, also echoed a similar sentiment.

“Bitcoin has surged past the $111,000 mark, setting a new all-time high and reinforcing its position as the bellwether of the virtual digital assets revolution. This exponential rally is the result of increasing institutional participation, maturing global regulations, and growing mainstream recognition of Bitcoin as a legitimate store of value. From a technological curiosity to a globally held asset, Bitcoin’s rise has been powered by transparency.”

Instead of speculative hype, the current uptrend is fueled by disciplined institutional accumulation, Santiment said in its update, while highlighting six consecutive days of ETF inflows and reduced retail FOMO as signs of a maturing market.

The standout performer is BlackRock’s spot ETF, IBIT, which now holds over 636,000 BTC, which, interestingly, happens to be more than the next 14 U.S. spot ETFs combined. Institutional giants like Mubadala and Citadel are increasing exposure through IBIT.

Meanwhile, corporate buyers like MicroStrategy and Metaplanet continued to ramp up their BTC holdings with more purchases.

With Bitcoin gaining over 25% in the past 30 days and nearly 60% year-over-year, Santiment expects the rally could extend to $115K-$120K. Meanwhile, the low retail interest may be contributing to the rally’s stability, creating a clear runway for institutional capital to lead the charge.