Crypto Market Cap Halts at $3.7T as Traders Rotate Out, Institutions Double Down on BTC, ETH

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.

Read MoreCoinDesk: Bitcoin, Ethereum, Crypto News and Price Data[#item_full_content]