Bitcoin held its ground above $107,000 on Thursday, yet the broader crypto landscape began to show cracks as profit-taking reared its head among major tokens. Dogecoin dropped nearly 4% to 19 cents, while Tron’s TRX fell 5.5% to 27 cents. Meanwhile, Ether, which recently surged past $2,800 amid increased ETF inflows, started to cool off, revealing signs of potential fatigue.
Profit-Taking Amidst Optimism
Despite the dip, traders maintain that the overall outlook remains constructive. The wheels of momentum are turning quietly but steadily across crypto markets, attracting the attention of savvy investors. The market’s underlying structural shifts are capturing the interest of smart money, even as some traders choose to lock in gains at local resistance levels. This trend aligns with recent observations in Bitcoin profit-taking underway as ‘big whales’ continue sell-off.
“Mainstream sentiment on crypto has turned around noticeably,” Augustine Fan, Head of Insights at SignalPlus, commented in a Telegram message. He attributed this shift to the recent success of Circle’s IPO and the upcoming listing intentions of Gemini and Bullish with the SEC. Fan noted a trend among companies emulating the MSTR strategy of holding Bitcoin in treasuries, alongside a surge of excitement around stablecoins both in traditional finance and on-chain platforms like Plasma.
Macro Conditions Fueling Market Dynamics
On the macroeconomic front, developments such as progress in U.S.-China trade talks and a softer inflation print have fostered a more favorable outlook for risk assets. This, in turn, has bolstered sentiment across both equity and digital asset markets. “The U.S.-China deal progress and softer CPI data are encouraging signs for global markets, easing inflationary pressures and creating a more stable economic outlook,” said Jeffrey Ding, Chief Analyst at HashKey Group, in another Telegram exchange.
The interplay between these macro conditions and the crypto market’s evolution cannot be overstated. Kraken economist Thomas Perfumo highlighted the role of digital assets as a macro hedge amidst rising real yield volatility and fiscal deficit concerns. “We’re witnessing a virtuous cycle,” Perfumo explained in an email to CoinDesk, pointing to the rapid adoption of structural bid vehicles like spot ETFs in a more favorable U.S. regulatory landscape. This absorption of supply has outpaced expectations, he noted. For further insights into the ongoing market dynamics, see Profit-Taking Continues in Crypto Market as Dogecoin, Cardano’s ADA Lead Majors Slide.
Looking to the Future
As we move deeper into 2025, the question on everyone’s mind is whether this trend can sustain its momentum. The crypto market’s resilience amidst economic shifts has been remarkable, but with the ever-present volatility, caution remains a companion for traders. Institutions continue to weave themselves more intricately into the digital asset space, potentially setting the stage for further growth.
The evolving landscape will undoubtedly present both challenges and opportunities. Investors and analysts alike are keenly observing whether the recent structural and macroeconomic shifts will lead to sustained growth or if the market will face new hurdles. The coming months will be crucial in determining the trajectory of the cryptocurrency market as it navigates this complex interplay of factors.
Source
This article is based on: Bitcoin, Dogecoin, Ether Could See Profit-Taking Even as Macro Conditions Improve
Further Reading
Deepen your understanding with these related articles:
- Bitcoin Strength Wows Traders After Market Tumble; ETH, DOGE Lead Majors Gains
- Ether, Dogecoin Surge, Outpaces Bitcoin as DeFi Comments Spurs Bullish Mood
- Bitcoin, Solana and Dogecoin Plunge as Circle Stock Surges After IPO
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.
