The crypto market faces a correction marked by capital movement between blockchains. Bitcoin's struggle around $100K is a key battleground amid geopolitical tensions.
The crypto market's recent turbulence highlights the intricate dance between capital movement, market correction, and geopolitical events. Bitcoin's struggle to hold the $100,000 level serves as a critical focal point.
Stablecoin Shifts and Network Dynamics
Last week's market dip coincided with a $339 million contraction in the total stablecoin supply. Solana experienced a significant outflow of $663 million in USDT and USDC, while Ethereum and Binance Smart Chain (BSC) saw inflows of $312 million and $300.1 million, respectively. This suggests capital flight from Solana towards Ethereum and BSC during the correction, reflected in Solana’s 36.04% decline in daily active addresses.
Institutional and Whale Activity Amidst the Correction
Despite the market downturn, institutional interest in Bitcoin remained strong. Bitcoin ETFs added a net total of 9,904 BTC (approximately $1.04 billion), with the iShares (BlackRock) Bitcoin Trust leading the inflows. Ethereum ETFs experienced mixed movements. Whale activity was also notable, with some accumulating ETH even as MicroStrategy scaled back its Bitcoin purchases.
Key Metrics to Watch
According to a16z crypto, several metrics indicate the crypto industry's maturation. Monthly mobile wallet users are up 23%, and adjusted stablecoin trading volume has increased by 49%. ETP net inflows for Bitcoin and Ethereum are up 28%. However, total transaction fees have decreased by 43%, reflecting efforts to reduce user fees.
Bitcoin's Critical $100K Level
Bitcoin briefly fell below $100,000 due to escalating geopolitical tensions between the U.S. and Iran, triggering a wave of panic selling. While BTC has since reclaimed this level, its structure remains fragile. Analyst Ted Pillows emphasizes the importance of holding the daily EMA-100 to avoid further downside pressure. A break below $99,000 could trigger a retest of the $92,000–$94,000 region, potentially
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