Crypto Valuations Hold at $3.7T as Traders Rotate Out, Institutional Inflows Favor BTC and ETH

Bitcoin is once again nearing its 50-day moving average, a level increasingly viewed by analysts as a marker of waning momentum. The repeated tests of this trend line suggest the asset’s recent rally may be losing steam.

“Bitcoin’s frequent brushes with the 50-day moving average indicate underlying fatigue in the trend,” noted Alex Kuptsikevich, chief market analyst at FxPro, in a Thursday note. “While there’s support near prior highs, this pause appears to be a profit-taking window, with active traders now turning to smaller, speculative projects.”

The total crypto market cap remains confined within a narrow $3.6 trillion to $3.8 trillion range. Currently sitting at around $3.72 trillion, it remains above the 50-day simple moving average (SMA) of $3.57 trillion, signaling a broader market still in consolidation. With trading activity muted, many short-term participants are shifting attention to micro-cap tokens, typical of a seasonal slowdown.

Institutions Keep Buying Despite Retail Slowdown

While retail traders reduce exposure, institutional investors are steadily increasing holdings in major assets.

Gaming firm SharpLink added 83,561 ETH to its treasury last week, worth approximately $264.5 million, bringing its total Ethereum holdings to 522,000. Altogether, 64 companies now hold 2.96 million ETH—roughly 2.45% of total supply—valued at $10.81 billion.

Bitcoin has also seen significant institutional inflows. Asset manager Strategy purchased 21,021 BTC in July, amounting to $2.46 billion. That brings total institutional accumulation for the month to 26,700 BTC. According to data from BitcoinTreasuries, public and private entities now collectively own 1.35 million BTC—over 6% of circulating supply.

Market Snapshot: Altcoins Mixed, Stablecoins Climb

Bitcoin is holding around $114,570, while Ethereum is steady at $3,650 as of early Thursday in Asia. XRP has gained 2% over the past day to trade at $2.97. Among major altcoins, Solana (SOL) and Dogecoin (DOGE) led the upside with 3.5% gains. Despite this, overall market volumes remain light and volatility subdued.

Meanwhile, stablecoins are seeing a resurgence. Ethena’s USDe has jumped 75% since mid-July, becoming the third-largest stablecoin by market cap with $9.5 billion in circulation. The surge appears driven by high on-chain yields, ranging from 10% to 19% depending on platform and strategy.

The total stablecoin market cap is approaching $275 billion, marking seven consecutive months of growth. Rising inflows into stablecoins often signal fresh fiat entering crypto markets—a potential precursor to renewed market activity and asset rotation.