Bitcoin fundamentals hit a new high but stagnate? Institutions are entering the market in large numbers, while early holders are reducing their holdings.

[BitPush] Here is a latest research report on the crypto market, which contains some interesting data worth discussing.

On the surface, it seems that Bitcoin's fundamentals are at historic highs, but there is an interesting phenomenon here—the price performance has actually lagged behind other major asset classes. How do we understand this contradiction?

The signals for institutional entry are very clear. The U.S. government has established a strategic Bitcoin reserve, with national pension funds in Abu Dhabi and Luxembourg allocating 1-3% of their capital to Bitcoin, and even top universities like Harvard have made similar allocations in their large endowment funds. These are all real signals of the traditional financial system moving towards crypto assets.

But at the same time, there is another side - since January of last year, more than 20% of Bitcoin UTXOs held for more than two years have been activated. What does this mean? It means that early long-term holders are selling off in large volumes. Part of this is indeed a natural behavior of taking profits, but on a deeper level, it reflects that as Bitcoin becomes more integrated into the traditional financial system, these initial believers are making their own choices.

Interestingly, even after experiencing these market adjustments, analysis agencies still hold a constructive bullish attitude towards 2026. The reason is quite straightforward - the current price divergence from the fundamentals is itself creating opportunities. Especially considering that the new U.S. government may implement a more accommodative monetary policy, this logic seems to hold water.