Bitcoin is once again nearing its 50-day moving average, a level that has become a focal point for market watchers. The repeated testing of this trendline is being seen as a sign of weakening momentum in the world’s largest cryptocurrency.
“Bitcoin continues to press against its 50-day moving average,” said Alex Kuptsikevich, chief market analyst at FxPro. “This persistent retesting reflects growing fatigue and a possible pause in the rally, as traders begin to lock in gains.”
The broader crypto market remains in a holding pattern, with total capitalization fluctuating between $3.6 trillion and $3.8 trillion. It currently sits at $3.72 trillion—still above its 50-day SMA of $3.57 trillion—though trading volumes have slowed and market participants appear to be rotating capital into smaller, high-risk assets.
“Momentum is fading among large caps, and that’s pushing more active traders into micro-cap tokens in search of higher upside,” Kuptsikevich noted.
Institutions Accumulate While Retail Steps Aside
Despite the cooling momentum in price action, institutional investors continue to build positions in top digital assets.
Gaming firm SharpLink added 83,561 ETH last week—an investment worth roughly $264.5 million—bringing its total Ethereum holdings to 522,000. In total, 64 corporate entities now collectively hold 2.96 million ETH, or 2.45% of the total supply, valued at $10.81 billion.
Bitcoin also saw strong institutional inflows in July. Strategy acquired 21,021 BTC (approximately $2.46 billion), contributing to the 26,700 BTC accumulated by major players during the month. According to BitcoinTreasuries data, public and private companies now collectively hold over 1.35 million BTC, accounting for more than 6% of the circulating supply.
Market Conditions: Sideways Action, Altcoin Rotation, Stablecoin Strength
As of Thursday’s Asian trading hours, Bitcoin is stable near $114,570, while Ethereum is trading around $3,650. XRP is up 2% at $2.97, while Solana (SOL) and Dogecoin (DOGE) have gained 3.5%—leading performance among large-cap tokens. However, overall market activity remains subdued, with both volume and volatility in decline.
In the stablecoin market, Ethena’s USDe has surged into the spotlight, rising 75% since mid-July to reach a $9.5 billion market cap. The rally is being fueled by high on-chain yield opportunities ranging from 10% to 19%, depending on platform and strategy.
Stablecoin market capitalization is nearing $275 billion, posting its seventh straight month of growth. The consistent rise in stablecoin inflows may signal fresh fiat entering the crypto space, often a precursor to renewed volatility as traders prepare to rotate back into risk assets.
