- Bitcoin dropped over 3% to US$101,650 whilst Ethereum fell nearly 8% and Dogecoin lost close to 10% as major cryptocurrencies entered the red.
- Glassnode analysis reveals long-term holders are taking profits after Bitcoin’s new all-time high, with previous support levels now acting as resistance zones.
- Institutional momentum appears to be waning with ETF outflows and MicroStrategy’s smallest recent purchase of just US$75 million raising concerns about future buying pressure.
- The public fallout between Elon Musk and Donald Trump over fiscal policy has caused Tesla shares to plunge 20% and added uncertainty to broader markets.
Prices across the board are down, with most major cryptocurrencies in the red. Bitcoin lost more than 3 per cent in the past day, currently trading at US$101,650 (AU$156,507).
Second-in-charge, Ethereum, was even hit even harder losing almost 8 per cent, while Dogecoin (DOGE) dropped close to 10 per cent over the past day.
The cooldown comes after Bitcoin made a new all-time high with many longer-term holders taking profits off the table.
A Glassnode heatmap shows that, as prices reached new highs, “the supply-dense zones that previously acted as bases of accumulation, often marked by sideways consolidation, have now turned into active selling zones”, prompting early buyers to sell at a profit.
The most notable selling pressure has come from cohorts who accumulated during key historical ranges: $25k–31k and $60k–73k.
GlassnodeRelated: Institutional Bitcoin ETF Holdings Plunge 23% in Q1 2025 as Price Slides
Bitcoin Growth Catalyst Missing, Say Analysts
The analysts added that many of these investors, having held through several bouts of volatility, are now adding to the excess supply, which seems to be restraining any further price gains – at least for now.
Finally, they said that a clear “upside catalyst” to push BTC past the ATH is absent and further short-term corrections are likely.
Mixed signals also come from the institutional side, with exchange-traded funds (ETFs) showing strong net outflows for the most recent trading day. Meanwhile, analysts at 10X Research said they’re concerned that MicroStrategy “increasingly looks tapped out”, raising questions about further Bitcoin buying.
Last week’s purchase totaled just $75 million, its smallest in recent months. All eyes will be on whether they skip this weekend’s expected buy, which could further signal waning institutional momentum.
10X ResearchMusk-Trump Separation Causes Tesla Share Slump
And, besides profit-taking, there’s another factor causing uncertainty in markets: the Musk-Trump friendship seems over.
Their alliance started to collapse just days ago when Musk publicly criticised Trump’s “One Big Beautiful Bill” as fiscally irresponsible, prompting Trump to threaten federal contract cancellations for Musk’s companies.
The feud then escalated into personal attacks on social media, with Musk calling Trump “ungrateful” and hinting at impeachment, while Trump labelled Musk “unstable” and claimed he had asked him to leave the administration.
The public fallout caused Tesla’s shares to plunge 20 per cent, and highlighted growing ideological rifts between tech elites and MAGA-aligned policymakers.
Read more: Former Data Analyst Tells Aussie Podcast How to Read Markets and Avoid Common Mistakes
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