Accelerated entry of funds! Bitcoin sold $1.7 billion in 24 hours!

The massive transaction of $1.7 billion in Bitcoin within 24 hours is the result of a combination of institutional fund allocation, market sentiment recovery, and compliance trends, sending a positive signal to the cryptocurrency market. This surge in trading volume is not a short-term speculation, but rather three core signals of hidden institutional layout, emotional recovery, and pattern reshaping, laying important groundwork for the future trend of the cryptocurrency market.

1： Institutional funds return to the market, with ETFs becoming the core channel for inflow

The core driving force behind the surge in Bitcoin trading volume this time is the continuous entry of institutional funds, with spot Bitcoin ETFs becoming the main carrier of fund layout. Data shows that the US spot Bitcoin ETF has recently recorded a continuous net inflow, absorbing $843.6 million in funds in a single day in mid January, setting a record for the largest single day inflow in months. Among them, BlackRock's IBIT attracted $648 million in funds, and Fidelity's FBTC attracted $125 million in funds. The capital appeal of top institutions has significantly driven market transaction activity.

Behind the return of institutional funds is the resonance of multiple factors. On the one hand, the demand for asset allocation adjustment was released at the beginning of the year, and Bitcoin performed worse than other assets in the fourth quarter of 2025. Some institutions adjusted their position weights by increasing their holdings of Bitcoin ETFs to make up for the previous allocation gap. On the other hand, the tense geopolitical situation has driven up the demand for safe haven, and Bitcoin, as an alternative asset, is favored. Against the backdrop of intensified global market volatility, it has become an important choice for institutions to diversify their risks. In addition, the market's expectations for the regulatory environment have stabilized, further reducing concerns about institutional entry and accelerating the flow of funds into the Bitcoin market.

2： Market sentiment rebounds from volatility, greed index approaches reasonable range

The breakthrough in trading volume has simultaneously confirmed the significant recovery of sentiment in the cryptocurrency market. After experiencing severe fluctuations in early January, the price of Bitcoin steadily rebounded above $96000, with a 24-hour trading volume of $1.7 billion, forming a healthy pattern of "both volume and price rising", indicating a strong willingness of funds to enter the market, rather than a single fund pulling up the market. From the perspective of market sentiment indicators, the "Fear and Greed Index" of cryptocurrencies has steadily climbed from the oscillation range, gradually approaching the "Greed Range" but has not yet reached the extreme frenzy level, indicating that the market's optimism is heating up but still maintaining rationality, leaving room for further upward trends.

It is worth noting that this capital entry presents diversified characteristics. In addition to Bitcoin, mainstream currency spot ETFs such as Ethereum, Solana, and XRP also recorded capital inflows. Among them, Ethereum ETF had a net inflow of $175 million, while Solana and XRP related funds absorbed $23.6 million and $10.6 million, respectively. The pattern of capital inflows across all categories indicates that the recovery of market sentiment is not limited to a single currency, but rather an overall increase in risk appetite, further consolidating the recovery trend of the cryptocurrency market.

3： Market differentiation intensifies, with compliance becoming the core focus

Behind the $1.7 billion trading volume, there is also a deep logic behind the reshaping of the cryptocurrency market landscape, with compliance becoming the core screening criterion for capital flow. In 2026, the legislative process of cryptocurrency will accelerate, and the regulatory logic will be further clarified, forming a boundary of "personal holding is not illegal, trading speculation is risky, and business behavior must be held accountable". Illegal trading channels will be severely cracked down on, and funds will accelerate their concentration towards compliant channels. The continuous investment of US spot Bitcoin ETFs is a direct reflection of funds pursuing compliant allocation paths, while the activity of illegal OTC trading and decentralized wallets has significantly decreased.

This pattern differentiation has important guiding significance for ordinary investors: on the one hand, the institutional led compliance trend will gradually reduce market volatility, and the valuation anchoring of mainstream currencies such as Bitcoin will become more rational; On the other hand, we need to be vigilant about the risks of illegal trading channels, stay away from false platforms that claim to be "compliant domestic cryptocurrency speculation", and avoid asset losses due to regulatory tightening. For institutions, compliant ETFs have become the core tool for laying out the cryptocurrency market, which will further enhance the market liquidity and valuation stability of mainstream currencies such as Bitcoin.