Bitcoin recently traded below its 7-day moving average, signaling short-term bearish momentum, while maintaining support above the 30-day moving average, indicating longer-term bullish trends, according to 10x Research. The cryptocurrency experienced a modest 2.5% decline over the past week, influenced by a significant $3.08 billion liquidation of long positions amid heightened market volatility triggered by public disputes between prominent figures Musk and Trump. Additional headwinds include uncertainty surrounding U.S. trade policies and a cooling labor market, which have collectively contributed to Bitcoin’s price stabilization near the $105,100 level.
Institutional interest in Bitcoin remains robust, highlighted by the U.S. Bitcoin spot ETF attracting $9 billion in inflows over five weeks. However, increased profit-taking by long-term holders is exerting downward pressure on prices. Meanwhile, the broader crypto equity market is diverging from Bitcoin’s subdued performance, with the total market capitalization of publicly traded crypto firms surpassing $300 billion. This shift is driven by institutional capital reallocating towards crypto stocks, reflecting a strategic pivot amid high Bitcoin prices.
Notably, upcoming events such as Circle’s IPO and Robinhood’s surge in cryptocurrency-related revenue underscore a structural transformation within the sector. Retail investors appear to favor cheaper crypto stock exposure over direct Bitcoin purchases. Despite Circle’s seemingly elevated valuation, its IPO success underscores growing investor confidence fueled by enhanced regulatory clarity. Furthermore, valuation analyses suggest Coinbase’s stock is undervalued by approximately 18%, while Robinhood and Galaxy Digital continue to demonstrate strong market momentum and potential undervaluation.