Bitcoin’s current market cycle is characterized by increased institutional participation, ETF-driven liquidity, and a significant expansion in tokenized real-world assets (RWAs), which have grown to $24 billion. This cycle has also seen volatility nearly halved, with an estimated $732 billion in new capital entering the market.
Key Insights
- •Glassnode estimates that Bitcoin has absorbed approximately $732 billion in new capital during the current cycle, while one-year realized volatility has decreased by nearly 50%.
- •The market for tokenized real-world assets has expanded from $7 billion to $24 billion in the past year, indicating growing institutional interest from pension funds, hedge funds, and corporations seeking on-chain exposure through regulated products.
- •The development of ETF rails, enhanced liquidity, and active market-making have shifted capital flows towards traditional infrastructure, resulting in tighter spreads and less extreme spot price fluctuations.
Bitcoin’s latest market cycle has demonstrated a notable shift towards greater institutional involvement and a reduction in volatility. This trend is further evidenced by the substantial growth in tokenized real-world assets, which have reached $24 billion, according to data from blockchain analytics firm Glassnode.
A new cost-basis cluster formed after Bitcoin’s drop into the low-$80K region, showing fresh accumulation at these levels. This zone is now one of the densest on the heatmap and could act as a strong support area, likely to be defended by recent buyers.
— glassnode (@glassnode) December 1, 2025
📉https://t.co/M4LXVTyLB9pic.twitter.com/yQHK8ziwMA
In their Q4 Digital Assets Report, Glassnode and Fasanara Capital highlighted that the market structure has undergone a significant transformation, with larger investors increasing their presence within the cryptocurrency sector.
The report indicated that Bitcoin has absorbed an estimated $732 billion in new capital throughout this cycle. Concurrently, the one-year realized volatility has seen a substantial decrease, dropping by nearly half.
Bitcoin's Maturation and Market Dynamics
Glassnode data reveals that Bitcoin ($BTC$) settled approximately $6.9 trillion over the last 90 days, a volume comparable to that of payment processors Visa and Mastercard. The firm observed that Bitcoin and stablecoins continue to lead in value transfer on public ledgers, even with the increasing migration of activity to exchange-traded funds (ETFs) and brokerage channels.
The report further explains that capital flows into ETFs have fundamentally altered how investment enters and exits the asset class. The adoption of regulated investment vehicles has channeled significant volumes through traditional market infrastructure. This has led to more stable liquidity conditions and a reduction in the frequency of extreme price swings in spot trading.
The market for tokenized real-world assets has experienced remarkable growth, expanding from $7 billion to $24 billion within a single year, signaling significant institutional adoption. Asset managers are actively exploring new distribution models through tokenized funds, while investors are seeking more streamlined access to traditional financial instruments, as noted in the report.
This expansion of tokenized RWAs reflects the keen interest from pension funds, hedge funds, and corporations that aim to gain on-chain exposure without necessarily taking directional positions on major cryptocurrencies, according to Glassnode. The firm stated that this segment has consistently attracted inflows throughout 2025, supported by ongoing enhancements in custody, compliance, and settlement infrastructure on various platforms.
Glassnode has reported that the market structure has become larger and exhibits lower volatility. The firm characterized the market as experiencing reduced extremes compared to earlier cycles, attributing this to deeper liquidity and a greater proportion of institutional flows across derivatives, spot markets, and on-chain data.
Stablecoins continue to serve as the primary bridge between traditional and digital financial markets, with substantial settlement demand observed across both centralized and decentralized venues, according to the report. This dual-rail structure has become an established feature of the digital asset ecosystem.
Demand for ETFs has spurred increased market-making and arbitrage participation from traditional financial firms, leading to tighter spreads and fewer price dislocations during market selloffs, as reported by Glassnode. The firm indicated that this dynamic has contributed to a more resilient market compared to previous cycles.
Analysts anticipate a further increase in institutional involvement as tokenized funds achieve broader adoption, according to the report. Glassnode described the current cycle as a pivotal moment in market composition. The combination of heavier institutional flows, reduced volatility, and the rapid growth of tokenized RWAs suggests that the sector is transitioning into a more structurally mature phase.