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Crypto Market Structure Strengthens Amidst Persistent Selling Pressure

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Crypto Market Structure Strengthens Amidst Persistent Selling Pressure
Key Points:
  • Bitcoin ETFs enhance structural strength, demand up by $44B in 2025.
  • Altcoins face reduced inflows as Bitcoin retains dominance.
  • Market resilience and selling pressure coexist amidst financial shifts.

The crypto market structure has improved with high stablecoin liquidity and regulatory progress, yet selling pressure persists, particularly affecting altcoins due to liquidity constraints and reduced retail demand. Bitcoinโ€™s dominance remains over 60%, signaling capital rotation.

Bitcoin ETFs are bolstering the crypto market structure while selling pressure endures. Recent analysis reveals that although demand remains, supply dynamics curtail price increases. The market improvement signals potential shifts in investor sentiment, highlighted by increased institutional involvement. The dominance of Bitcoin over altcoins reflects cautious capital allocation amid market volatility.

Analysis of current crypto market conditions indicates that Bitcoin maintained stability due to institutional ETF involvement, despite declining retail activity. Higher liquidity and lower volatility further show resilience. Thomas Perfumo, Global Economist at Kraken, emphasizes, โ€œBitcoin has shown macro-driven leadership with institutional inflows, yet net demand appears muted heading into 2026.โ€

Bitcoinโ€™s dominance surpassed 60%, as investors prefer more stable options amid tighter liquidity conditions. Altcoins experienced continued selling pressure, further consolidating market strength around Bitcoin and similar assets.

Stablecoin liquidity reached record highs, amplifying on-chain dollar availability. Despite this, ETF inflows have slowed compared to previous years, reflecting changing investor behavior since 2024.

Historical patterns illustrate that Bitcoinโ€™s appeal grows when market liquidity tightens. Future outcomes might include regulatory adjustments, technological advances, and increased oversight that could shape investment landscapes. Institutional focus may drive innovation, enhancing market maturity.

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