At $3.7T, Crypto Market Cap Pauses as Retail Pulls Back and Institutions Double Down on Bitcoin, Ethereum

Bitcoin is once more nearing its 50-day moving average, a key technical level that’s becoming a recurring battleground for traders. The repeated retests of this trendline reflect growing fatigue in the asset’s recent rally, suggesting a possible consolidation phase ahead.

“Frequent interaction with the 50-day moving average highlights underlying exhaustion in Bitcoin’s uptrend,” said Alex Kuptsikevich, chief market analyst at FxPro, in a note shared Thursday. “We’re seeing a classic scenario where traders are pausing to realize profits near previous highs, while speculative energy shifts elsewhere.”

The total crypto market cap continues to trade within a tight $3.6 trillion–$3.8 trillion range, currently standing near $3.72 trillion—comfortably above the 50-day simple moving average of $3.57 trillion. However, declining participation and muted volume suggest traders are rotating out of majors and into high-risk, low-cap tokens as the August slowdown takes hold.

“The current stagnation is pushing active traders toward micro-cap opportunities,” Kuptsikevich added, emphasizing the divergence between institutional and retail behavior.

Institutional Appetite Grows for Bitcoin and Ethereum

While short-term players pull back, institutions are steadily accumulating. Gaming firm SharpLink added 83,561 ETH last week—worth approximately $264.5 million—raising its total ETH reserves to 522,000. Across the sector, 64 companies now collectively hold 2.96 million ETH, representing 2.45% of total supply and valued at $10.81 billion.

Bitcoin also witnessed major institutional inflows. Strategy acquired 21,021 BTC in July, contributing to the 26,700 BTC added by large holders over the month. Public and private firms now control more than 1.35 million BTC—over 6% of total circulating supply—according to BitcoinTreasuries.

Market Snapshot: BTC, ETH Hold Steady Amid Sector Rotation

Bitcoin remains steady at around $114,570, while Ethereum trades near $3,650 as of Thursday’s Asian session. XRP is up 2% over the past 24 hours to $2.97. Among majors, Solana (SOL) and Dogecoin (DOGE) led gains, each rising 3.5%, though overall trading volumes and volatility remain subdued.

In the stablecoin sector, Ethena’s USDe has surged to become the third-largest by market cap, rising 75% since mid-July to hit $9.5 billion. The growth is largely attributed to attractive yields ranging from 10% to 19%, depending on platform and strategy.

Stablecoin capitalization has now climbed for seven consecutive months, nearing $275 billion. Rising inflows into fiat-pegged assets are often seen as a leading indicator of fresh capital entering crypto markets—potentially setting the stage for renewed volatility.