Crypto Market Weekly Report: Institutional Funds Regain Confidence, MicroStrategy Continues to Increase Bitcoin Holdings

Market Overview

Recently, the crypto market has shown a volatile rebound. The US stock market has experienced one of the most severe adjustments since the pandemic, but as expectations for reciprocal tariffs in the US have softened, market sentiment has improved. Although bottom signals in the US stock market have begun to appear, they have not yet been fully established. The crypto market is following the fluctuations of the US stock market.

This week, Bitcoin has been fluctuating upwards, with a large institutional investor increasing their holdings of Bitcoin worth $600 million in the past week. The main focus of the market is on the BSC chain and SOL chain ecosystems.

The top five tokens with the highest increase are ZETA(60%), LAYER(60%), FARTCOIN(50%), MEW(40%), and BEAM(40%). The ones with the largest decrease include NTGL(-60%), PI(-30%), PLUME(-20%), SATS(-15%), and XCN(-10%).

It is worth noting that a well-known market maker on the SOL chain has become active again, with significant over-the-counter trading demand recently. The token issuance platform FORM on the BSC chain has benefited from a $100 million liquidity incentive program launched by the chain. Meanwhile, HYPE has suffered a loss of trust due to an attack on its centralized exchange treasury, leading to an emergency delisting process, highlighting the risks of small-cap token contracts being easily manipulated.

On-chain data analysis

The demand on the Bitcoin network continues to weaken, and most short-term investors are currently in a state of loss. The supply from long-term holders has started to grow again. Currently, short-term holders hold 40% of the wealth, down from a peak of 50% at the beginning of 2025. This figure remains significantly lower than the historical bull market highs of 70-90%, which may be related to the large institutional investors investing through ETFs in this round.

The market value of stablecoins has significantly decreased, reflecting an increase in risk-averse sentiment among investors. However, institutional funds have begun to regain an optimistic outlook, ending a consecutive five-week outflow of funds.

The MVRV-Z Score indicator is currently at 2.0, close to the mid-level of the market. This indicator reflects the overall profitability of the market, with values above 6 indicating a peak range and values below 2 indicating a bottom range.

Futures Market

The futures long-short ratio is 1.1, which is at a normal level. The futures open interest has slightly decreased, reflecting a lack of clear direction in the market. The funding rate remains at a low level of 0.01%, indicating that the market is overall relatively balanced.

Public Chain Ecosystem Development

Bitcoin ecosystem

A large institutional investor continues to increase its holdings of nearly 7,000 Bitcoins and has launched a perpetual preferred stock product for trading on Nasdaq, demonstrating its strategic determination to maximize its Bitcoin holdings.

Ethereum ecosystem

The Ethereum Pectra upgrade has been successfully launched on the new Hoodi testnet. This upgrade introduces the EIP-7702 proposal, which will enable multi-coin payment of gas fees.

On the other hand, Celo has completed its migration to the Ethereum Layer 2 network, adopting the Optimism OP Stack technology. This move aims to enhance Celo's security, scalability, and interoperability with the Ethereum ecosystem.

The total locked value of Ethereum DeFi ( TVL ) reached 4.6288 billion USD, up 1.53% from last week.

TON ecosystem

The fully compatible HiBit DEX has landed in the TON ecosystem and is expected to play an important role in connecting the TON ecosystem with other blockchain networks. HiBit DEX combines the advantages of centralized and decentralized exchanges, aiming to achieve an efficient trading experience at the level of millions of TPS.

The TON DeFi locked amount reached 170.3 million USD, an increase of 14.99% compared to last week.

Solana ecosystem

Pump.fun has launched its native DEX PumpSwap, further compressing the market space of Raydium. Within a week of its launch, PumpSwap has captured 21% of the Solana ecosystem DEX market, with a trading volume of up to 1.5 billion dollars.

The total locked value of Solana DeFi is $6.809 billion, a slight decrease of 0.24% compared to last week.