In a week that has seen the crypto market cap hover between $3.6 trillion and $3.8 trillion, traders appear to be pulling back liquidity, shifting their focus toward micro-cap tokens. This trend, observed in early August, hints at a potential summer lull, with some market watchers suggesting it may continue. Despite this, Bitcoin (BTC) made another attempt to test its 50-day moving average on Tuesday, signaling a possible exhaustion in momentum. However, the broader market capitalization remains strong at about $3.72 trillion, comfortably above the 50-day simple moving average (SMA) of $3.57 trillion.
Institutional Confidence in BTC and ETH
While retail traders seem to be taking a breather, institutions are doubling down on their crypto investments, particularly in Bitcoin and Ethereum. Gaming company SharpLink recently added a staggering 83,561 ether (ETH) to its reserves, equivalent to approximately $264.5 million. This brings its total holdings to 522,000 ETH, a significant slice of the pie. At present, a total of 64 corporates collectively own 2.96 million ETH, accounting for 2.45% of the entire supply, valued at $10.81 billion.
Bitcoin, too, is witnessing significant institutional interest. In July alone, Strategy acquired 21,021 BTC, representing an investment of $2.46 billion. This forms part of a larger trend that saw big players add 26,700 BTC over the month. According to BitcoinTreasuries, public and private companies now hold 1.35 million BTC, which constitutes more than 6% of the total circulating supply. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
Market Dynamics and Price Movements
At the market level, Bitcoin is holding steady around $114,570, while Ethereum is trading at $3,650 as of Thursday’s Asian morning hours. XRP has shown a modest uptick, trading near $2.97, marking a 2% increase over the past 24 hours. Among other major tokens, Solana’s SOL and Dogecoin (DOGE) have led the gains, each registering a 3.5% bump. Despite these movements, total volumes and volatility remain subdued, signaling a cautious market sentiment.
Ethena’s USDe has emerged as a noteworthy player, recently becoming the third-largest stablecoin by market cap. Its impressive 75% surge since mid-July—now reaching $9.5 billion—seems to be driven by attractive yields ranging from 10% to 19%, depending on specific markets or strategies. The stablecoin sector is nearing a $275 billion market cap, marking its seventh consecutive month of growth. This influx of stablecoin activity suggests fresh fiat entering the crypto ecosystem, potentially setting the stage for increased market volatility as traders convert these currency-pegged assets into tokens.
The Road Ahead
While institutions are evidently bullish, the broader crypto market faces a complex road ahead. The continued interest from corporate giants underscores a long-term confidence in digital assets. Yet, the short-term retreat by retail traders raises questions about whether this mixed momentum can sustain itself. As explored in our recent coverage of corporate Bitcoin investments, the sustainability of these investments remains a topic of discussion. The market’s current state of play—marked by significant institutional inflows juxtaposed with quieter retail activity—paints a picture of cautious optimism.
As we head further into August, eyes will be on BTC’s next move. Will it break free from its current pattern and push past its 50-day moving average, or will we see a deeper retracement? The evolving dynamics between institutional and retail players, alongside the steady march of stablecoins, will shape the narrative for the rest of 2025. The crypto world is watching.
Source
This article is based on: Crypto Market Cap Halts at $3.7T as Traders Rotate Out, Institutions Double Down on BTC, ETH
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
