BTC Support Levels Under Scrutiny as Traders Assess Risk of Deeper Correction

Stablecoin Reserves Hit Multi-Year Highs as Crypto Market Enters Standby Mode

A surge in stablecoin holdings across major exchanges suggests investors are preparing to re-engage with crypto markets—pending clearer signals from macroeconomic and technical fronts.

Bitcoin (BTC) remained steady near $105,000 on Wednesday, marking a modest recovery from earlier in the week. Ether (ETH), XRP, Dogecoin (DOGE), and Cardano (ADA) each traded with minimal movement, and total crypto market capitalization fell 1.8%, pointing to a period of market indecision.

Nick Ruck, Director at LVRG Research, attributed the cautious tone to a recalibration of risk. “With U.S. economic data softening and geopolitical tensions appearing priced in, we’re seeing investors pause—not exit,” he said. “Tech and crypto remain structurally favored, with institutional Bitcoin adoption rising steadily.”

Fineqia analyst Matteo Greco reported that BTC closed last week at $105,700, a 3.1% decline from the previous week’s $109,050 level. The pullback coincided with $150 million in net outflows from BTC spot ETFs—breaking a six-week inflow streak. Still, BTC exchange reserves continue to decline, reinforcing the narrative of long-term holding behavior.

More notably, stablecoin reserves on exchanges have surged to levels not seen in years. “It’s dry powder waiting for a trigger,” said Greco. “This capital hasn’t exited—it’s watching.”

He also highlighted Bitcoin’s MVRV ratio at 2.2, significantly below the 3.7 historical threshold that typically signals market tops. This suggests room for further upside, despite near-term hesitancy.

Bitunix analysts pointed to $105,000 as a near-term pivot level. A sustained hold could extend upside potential, while a break toward $102,700 could signal renewed risk-off sentiment. They also noted that a decline in Bitcoin dominance could usher in a shift toward altcoins, historically associated with late-stage bull markets.

With elevated stablecoin liquidity, moderating inflation expectations, and institutional infrastructure continuing to expand, crypto markets may be nearing a decisive moment.

“Volatility may be subdued now,” Ruck added, “but the next macro catalyst could unleash a wave of capital deployment already sitting on the sidelines.”