Crypto Market Cools Down as Large Investors Re-emerge: Americas Market Update

The recent surge in Bitcoin's value has stalled, with the cryptocurrency experiencing a 5% decline from its record high. This downturn has had a ripple effect on the broader market, although certain exceptions such as BONK and PUMP have managed to buck the trend with a 5% increase over a 24-hour period. The decline is attributed to the movement of dormant Bitcoin by large investors, known as whales, to centralized exchanges, which often precedes a sale. According to blockchain analytics firm Lookonchain, an early investor's wallet holding 80,000 BTC transferred approximately half of its holdings to Galaxy Digital, which then deposited 6,000 BTC into the Binance and Bybit exchanges. This on-chain transaction occurred after Bitcoin reached a record high of over $123,000 on Monday. Despite the potential for profit-taking, as indicated by a rise in Coin Days Destroyed metric and increased large exchange inflows, Bitcoin has demonstrated resilience, reinforcing confidence in sustained institutional support and robust market demand, according to Tagus Capital. Inflows into US-listed spot Bitcoin exchange-traded funds (ETFs) slowed down to $297 million on Monday, a 70% decrease from Friday, while inflows into spot ETH ETFs increased to $259 million from $204 million. The lead research analyst at BRN, Valentin Fournier, views the slowdown in Bitcoin inflows as a sign of weaker buyer conviction at elevated levels, suggesting that the upcoming consumer price index and producer price index could set the tone for the next price move. Other analysts are focused on the House of Representatives' votes on the GENIUS and CLARITY Acts, which could accelerate broader institutional participation in the crypto market if passed. Meanwhile, Coinbase's shares reached a record high of $398.50 on Monday, with its market capitalization surpassing $100 billion. Additionally, SharpLink Gaming purchased an additional 24,371 ETH, according to Arkham Intelligence. In traditional markets, the Japanese 30-year government bond yield briefly rose to 3.20%, matching the multi-decade high set in May, while the MOVE index, which measures the 30-day implied volatility in the US Treasury market, turned up from a long-held support, warning of renewed turbulence in bonds.