### Crypto Market Experiences Mixed Trading Amid Sideways Movement
The cryptocurrency market has seen a blend of trading patterns as prices have remained relatively stable for the second week in a row. Retail and institutional investors have responded differently at various points during the recent dip, with institutional players making significant sales that have influenced market dynamics. Additionally, U.S. foreign policies have played a role in shaping market trends, even though they were initially expected to promote growth during Donald Trump’s second term.
### Bitcoin Whale Dump Large Holdings
In the past 30 days, Bitcoin whales have moved 60,000 BTC to exchanges, increasing sell pressure. This shift follows a period of instability in U.S. tech stocks, which has contributed to bearish sentiments in the crypto space. Bitcoin’s price fell below $100K after the launch of the Chinese AI startup DeepSeek, and it has struggled to regain its previous momentum. As confidence waned further due to Trump’s new tariffs, whales began reallocating their assets to mitigate losses accrued in recent months. Last year, a surge in institutional inflows and whale accumulation propelled Bitcoin’s price above $100K, with expectations of reaching $150K this year. However, these recent outflows have hindered mainstream adoption, leading to a decline in market sentiment, as reflected in a drop in the fear and greed index. The market reaction indicates fear, with several assets dipping below their previous support levels. Bitcoin whales hold significant sway over the market, and large-scale sales from these groups have contributed to a further decline in the fear and greed index. Monitoring centralized exchange and whale balances is crucial for predicting the next market direction. Despite these bearish indicators, some investors are seizing the opportunity to buy the dip, hoping to secure favorable entry points ahead of a potential rebound. Crypto trader Ali Martinez noted that the broader market recorded $6 billion in capital inflows as holders look toward recovery.
### Rebound Hinged On Spot Bitcoin ETFs
The recent downturn has impacted Bitcoin, altcoins, meme tokens, and decentralized finance (DeFi) assets. Decreased trading volumes have negatively affected the market, resulting in a significant drop in crypto prices. The overall market capitalization has fallen from $3.5 trillion to $3.1 trillion, erasing billions in value. Currently, Bitcoin is trading at $97,746, down 4% over the past week, while altcoins have seen even greater exits. Nevertheless, spot Bitcoin ETFs, which have attracted over $40 billion and are dominating the financial markets, serve as a crucial support for Bitcoin’s price. Institutional interest is on the rise, as on-chain metrics show positive trends despite the current market conditions. Firms like Standard Chartered have made optimistic projections, anticipating a substantial rally before the conclusion of Trump’s second term. Many users believe that spot Bitcoin ETFs will see significant inflows this year, thanks to Trump’s favorable policies.
