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 (BTC) 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. “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 (ETH) 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 (XRP) is trading near $2.97, up 2% over the past 24 hours. Solana’s SOL (SOL) and dogecoin (DOGE) 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. Powered by WPeMatico

Bitcoin’s (BTC) volatility meltdown continues as the cryptocurrency remains stagnant, with slow price action between $110,000 and $120,000. The cryptocurrency’s 30-day implied volatility, as represented by Volmex’s BVIV index, fell to an annualized 36.5% late on Wednesday, reaching levels last seen in October 2023, when BTC was trading below $30,000, according to data source TradingView. The new multi-year low in implied volatility suggests that options traders are not yet rushing for hedges, despite U.S. economic data raising concerns about stagflation. The demand for options, which are contracts used to hedge against or profit from price swings, is a major driver of an asset’s implied volatility. The same thing can be said about stocks, where the VIX index has reversed Friday’s spike from 17 to 21. The VIX measures the 30-day implied volatility in the S&P 500. BTC mirrors stock market volatility patterns BTC’s implied volatility has been in a months-long downtrend, moving in the opposite direction of the cryptocurrency’s price, which has surged from $70,000 to over $110,000 since November. The negative correlation marks a profound shift in bitcoin’s market dynamics. Historically, BTC’s volatility and its spot price moved in tandem, with volatility rising in both bull and bear markets. The change in this spot-volatility correlation is attributed, in part, to the growing popularity of structured products that involve the writing (selling) of out-of-the-money call options, analysts told CoinDesk. This new dynamic suggests that bitcoin is increasingly mirroring patterns on Wall Street, where implied volatility often dwindles during steady bull runs. Read: Bitcoin’s ‘Low Volatility’ Rally From $70K to $118K: A Tale of Transition From Wild West to Wall Street-Like Dynamics Powered by WPeMatico

Good Morning, Asia. Here’s what’s making news in the markets: Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk’s Crypto Daybook Americas. Bitcoin (BTC) is treading water around $115,000 on Thursday morning in Asia, up 1% in the last 24 hours, as the post-all-time-high correction continues to play out across low volume and weak conviction. According to Glassnode, BTC has entered what it calls an “air gap”, a low-liquidity zone between $110,000 and $116,000, after breaking down from a major supply cluster where short-term holders had previously found support. These areas typically see little trading activity and can either serve as a base for accumulation or become a trapdoor for deeper downside if demand fails to return. “The market is effectively re-finding its footing,” Glassnode analysts wrote, describing the range between $110,000 (the prior ATH) and $116,000 (recent buyer cost basis) as the new battleground. They noted that while opportunistic buying has emerged, with 120,000 BTC acquired on the dip, prices have yet to reclaim resistance levels convincingly, particularly the $116,900 threshold that marks recent short-term holder entry points. Short-term holder profitability has dropped from 100% to 70%, which Glassnode frames as typical for a bull market mid-phase. But without fresh inflows, this could quickly erode sentiment. ETF flows have turned negative, with a 1,500 BTC outflow earlier this week, the largest since April. At the same time, funding rates in the derivatives market have cooled, reflecting reduced leverage and a more cautious stance among speculators. Market maker Enflux offered a similar take: “Crypto markets remain in a fragile holding pattern. Despite some relief in the altcoin space, majors like BTC and ETH are still struggling to inspire confidence,” it wrote in a client note. “The broader trend? Heavy legs with more or less light volume.” ETH is up 2% in the last 24 hours, trading just below $3,600. The CoinDesk 20 Index, which tracks a broad basket of crypto assets, gained 1.69% to 3,815.22. “Until BTC and ETH reclaim strength with volume,” Enflux added, “the path of least resistance could remain sideways to down.” The market’s next move likely hinges on whether buyers are willing to step in and build a base within this low-volume zone, or whether another flush toward $110K is needed to reset the trend. For now, traders remain cautious, and the bulls remain unproven. Market Movers: BTC: A potential Bitcoin supply shock, driven by drying OTC desk reserves and steady corporate accumulation, could “uncork” BTC price action after a dip below $110K, market observers say. ETH: Ethereum may have formed a local top as sell pressure hits $419 million, its second-highest on record, while ETH retests a major resistance zone near $4,000 that preceded a 66% drop in late 2024, raising the risk of a 25–35% decline by September; meanwhile, Polymarket bettors remain split, with 48% backing a rally to $5,000 despite the bearish signals. Gold: Gold’s rally stalled Wednesday as traders took profits and weighed rising Fed rate cut odds, U.S. trade tensions, and a looming Fed leadership shakeup, leaving prices flat after a three-day gain driven by economic weakness; spot gold last traded at $3,372.11, down 0.24% on the day. Nikkei 225: Asia-Pacific markets opened mixed Thursday, with Japan’s Nikkei 225 flat, as investors shrugged off new U.S. semiconductor tariff threats. S&P 500: U.S. stock futures were flat Wednesday night as traders digested Trump’s new semiconductor tariffs, with the S&P 500 still up 1.7% for the week. Elsewhere in Crypto: Industry leaders cheer liquid staking’s SEC green light, opening doors for institutional adoption (The Block) Roman Storm Guilty of Unlicensed Money Transmitting Conspiracy in Partial Verdict (CoinDesk) Trump Media Tests ‘Truth Search’ Using Perplexity AI (Decrypt) Powered by WPeMatico