- Bitcoin fell below $105,000 as the total crypto market cap dropped 3.25%, despite positive developments like Circle’s higher-priced IPO and steady ETF inflows.
- Institutional interest is growing, but it has yet to significantly impact market prices or reverse the broader downturn.
Bitcoin slipped below the $105,000 mark on Thursday, erasing earlier gains and highlighting continued volatility across the cryptocurrency market. The leading digital asset dipped by 0.1%, with data showing the total crypto market capitalization contracted by 3.25% to $3.41 trillion, according to CoinGecko.
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Market Retreat Despite Positive Signals
The dip came amid signs of growing institutional interest. JPMorgan reportedly plans to allow clients to use crypto-linked assets as collateral for loans, which could represent a major shift in traditional finance’s embrace of digital assets. However, this optimism has yet to reflect in price action. Ethereum and other major altcoins also posted declines, showing that sentiment alone isn’t enough to fuel a sustained rally.
Meanwhile, trading volumes remained muted at around $89 billion, adding to the bearish tone of the day. Even with signs of increased activity in regulated crypto products, prices failed to respond positively.
Bitcoin Unmoved by Circle’s IPO and ETF Inflows
One of the more promising developments was Circle’s IPO announcement. The USDC stablecoin issuer priced its initial public offering at $31 per share—higher than previous estimates—and expanded its share count to 34 million. This surge in investor interest points to confidence in crypto-focused companies, even as asset prices stumble.
Additionally, U.S.-listed spot Bitcoin ETFs posted inflows for a second straight day, and Ethereum ETFs extended their streak to thirteen consecutive sessions. These consistent inflows suggest a steady appetite for crypto exposure among institutional investors, although they’ve yet to spark a broad price rebound.
Despite encouraging signs like Circle’s successful IPO pricing and ETF inflows, Bitcoin’s inability to hold above $105,000 and the broader 3.25% market dip underscore the fragility of the current rally. Until stronger fundamentals or a shift in trading volume supports prices, the crypto market may continue to see short-lived gains followed by swift retreats.
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