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Crypto Market Cap Halts at $3.7T as Traders Rotate Out, Institutions Double Down on BTC, ETH
“Bitcoin was again approaching its 50-day moving average. Such frequent testing of the medium-term trend signal line indicates accumulated fatigue in the first cryptocurrency,” one analyst said.
Updated Aug 7, 2025, 1:33 p.m. Published Aug 7, 2025, 4:20 a.m.
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What to know:
- The crypto market remains stable within a $3.6–$3.8 trillion range as traders shift focus to micro-cap tokens.
- Bitcoin's frequent testing of its 50-day moving average indicates market fatigue, despite institutional accumulation.
- Stablecoin market cap continues to grow, with Ethena’s USDe becoming the third-largest stablecoin by market cap.
The crypto market cap is holding within a tight $3.6 trillion–$3.8 trillion range as traders pull liquidity and shift focus to micro-cap tokens in the first week of August, with some warning of a summer lull to continue.
Bitcoin tested its 50-day moving average again on Tuesday, signaling exhaustion, while broader market capitalization remains above the trend, currently at approximately $3.72 trillion, versus the 50-day SMA of $3.57 trillion.
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“The support received in the area of previous peaks suggests a temporary pause to lock in profits,” said Alex Kuptsikevich, chief market analyst at FxPro, in a Thursday note to CoinDesk. “But sluggishness is turning away the most active traders, who’ve now moved on to very small projects.”
“Bitcoin was again approaching its 50-day moving average. Such frequent testing of the medium-term trend signal line indicates accumulated fatigue in the first cryptocurrency,” he added.
That retreat by short-term speculators stands in contrast to continued institutional accumulation.
Gaming company SharpLink added 83,561 ether last week (approximately $264.5 million), bringing its reserves to 522,000 ETH. In total, now 64 corporates hold 2.96 million ETH, or 2.45% of supply, worth $10.81 billion.
Bitcoin also saw meaningful institutional inflows. Strategy acquired 21,021 BTC ($2.46 billion) in July, contributing to the 26,700 BTC added by large entities throughout the month. Public and private companies now collectively hold 1.35 million BTC, or more than 6% of the total circulating supply, according to BitcoinTreasuries.
At a market level, BTC is holding steady around $114,570, while ETH sits at $3,650 as of the Asian morning hours on Thursday. XRP is trading near $2.97, up 2% over the past 24 hours. Solana’s SOL and led gains among majors with a 3.5% bump, while total volumes and volatility remain muted.
Meanwhile, Ethena’s USDe earlier this week became the third-largest stablecoin by market cap, surging 75% since mid-July to reach $9.5 billion, likely driven by yields ranging from 10%–19% (based on specific markets or strategies).
The total stablecoin market cap is nearing $275 billion, marking its seventh consecutive month of growth. Rising stablecoin flows are indicative of fresh fiat entering the crypto ecosystem, which may be considered a precursor to further market volatility as traders exchange currency-pegged assets for tokens.
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- Bithumb admitted that serious internal system flaws led it to mistakenly transfer about $40 billion in bitcoin to customers instead of a planned payout of roughly $428.
- The error briefly caused bitcoin prices on Bithumb to plunge 17 percent, prompted a probe by South Korea's Financial Supervisory Service and exposed gaps in the exchange's asset-matching and account-segregation controls.
- While Bithumb has recovered most of the coins, 1,786 bitcoins sold before accounts were frozen remain missing, intensifying lawmakers' concerns about weak oversight in one of the world's busiest crypto markets.
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