Bitcoin Steady Above $105K Despite Political Uncertainty and Growing Institutional Support
As Asian markets open on Wednesday, Bitcoin (BTC) trades slightly above $105,500, retreating from the $107,000 level reached earlier during the U.S. session.
Despite unexpected geopolitical developments—like a surprise U.S. strike on Iran—Bitcoin has shown resilience as a store of value. According to CoinDesk data, BTC’s price has remained relatively stable over the past month, gaining about 1%.
Unlike the December 2024 rally above $100K, which triggered significant profit-taking, long-term holders appear more confident this time. Glassnode’s weekly report notes that a record 14.7 million BTC are held by long-term investors who have shown limited selling near all-time highs.
The adjusted Spent Output Profit Ratio (aSOPR) suggests that most selling comes from short-term traders, not long-term holders.
Glassnode’s Liveliness metric continues to drop, indicating that older coins remain dormant.
Institutional demand remains strong, with QCP Capital reporting $2.2 billion in net inflows into Bitcoin spot ETFs last week. Investors such as Strategy and Metaplanet continue to build their positions.
This steady demand has strengthened Bitcoin’s market base, with realized capitalization rising to $955 billion, signaling genuine capital accumulation rather than speculative trading.
Still, risks persist. QCP highlights increasing leveraged long positions and positive funding rates in major perpetual futures, signaling heightened speculation.
Glassnode warns the market may need a significant price move, either up or down, to trigger more selling pressure. Currently, a balance exists between steadfast long-term holders and leveraged short-term traders.
Following the Senate’s approval of the “Big Beautiful Bill,” Bitcoin’s price has remained in a holding pattern, with long-term holders reluctant to sell and speculators increasing leveraged bets.
Analysts remain vigilant for a catalyst that could prompt a decisive market shift.
Additional Updates:
- Figma’s Bitcoin ETF Investment: In IPO filings, Figma disclosed a $70 million holding in the Bitwise Bitcoin ETF and plans to use USDC reserves for future BTC purchases.
- DDC Enterprise Capital Raise: Hong Kong’s DDC Enterprise secured $528 million to acquire 5,000 BTC over three years.
- DeFi Development Corp. Convertible Notes: The Solana-focused company plans a $100 million convertible note offering to boost SOL holdings.
Market Overview:
- Bitcoin (BTC): Trading near $106K, with long-term holders mostly inactive.
- Ethereum (ETH): Experienced heavy selling after failing to surpass $2,522, ending the day with a 4.5% trading range.
- Gold: Rose over 1% amid a weaker dollar and global trade concerns, with spot prices hitting $3,357.85.
- S&P 500: Closed mixed, with the index down 0.11% at 6,198.01 as investors rotated out of tech shares.
