Analysis: Bitcoin hits resistance at $100,000, crypto ecosystem experiences diversification of capital flows

“While we’ve seen strong institutional buying pressure, particularly from entities like MicroStrategy’s ongoing accumulation strategy, the broader crypto ecosystem is experiencing a diversification of capital flows from both institutional and non-institutional players,” said Chris Newhouse, head of research at Cumberland Labs. “After six weeks of positive inflows, we’ve seen a week of selling, and derivatives traders are looking at ETF demand as a measure of macro direction,” Fadi Aboualfa, head of research at Copper Technologies Ltd., said on Monday. “Early Bitcoin ETF investors may be keen to rebalance their portfolios as their funds have more than doubled. After all, at least half of their investments are risk-free money when the market hits a psychological barrier.” Veter Lunde, head of research at digital asset research firm K33, cited data from The Bitcoin Lab: “On-chain data shows that the medium-term group (traders who bought BTC in the $55,000-70,000 range) is actively taking profits, and profit-taking is particularly intense when BTC trades above $90,000.” Lunde The indicator is an estimate that tracks Bitcoin on-chain movements, categorized by last price, according to the report. However, it is rare to see such a significant concentration in a price group, so this suggests that the group is particularly active at current prices. Wintermute OTC trader Jake Ostrovskis said: "The market has stagnated over the past 10 days, with Bitcoin prices just below 100,000. Volatility has compressed slightly to the 64th percentile, while Ethereum prices have remained at the 81st percentile, with a significantly higher increase." (Bloomberg)