Nvidia becomes first company to reach $4 trillion market cap amid AI boom
- Bitcoin consolidates above 105k.
- The mood improves after Trump delays direct involvement in the Israel-Iran war.
- The Genius Act passed the Senate vote, acts as a tailwind.
- Institutional & whale demand remains strong.
- BTC technical analysis.
Bitcoin is consolidating above 105k for a second straight week, trading in a tight range amid reduced volatility and subdued price action. As the price moves sideways, the crypto Fear and Greed index has flipped back to Neutral from Greed, dropping to 54.
President Trump’s delay in deciding whether to become directly involved in the Israel–Iran conflict has eased fears of immediate involvement and lifted risk sentiment across the broader market. While US futures are pointing to a firmer open and Gold is falling as safe-haven demand unwinds, Bitcoin is little changed.
Cryptocurrencies have shown resilience this week as geopolitical uncertainty hangs over the market. Trump has set a two-week timeline before deciding whether the US will get involved. While the markets are relatively calm now, should tensions escalate further or the US intervene in cryptocurrencies could experience a sharp correction.
The Fed’s Hawkish Hold
Separately, BTC and its crypto peers were also unfazed by the more hawkish Federal Reserve policy earlier in the week. While the US central bank left interest rates unchanged in line with expectations, Federal Reserve chair Jerome Powell said that a meaningful increase in inflation was expected as Trump’s trade tariffs impact the economy.
Genius Act Passes the Senate
On a positive note, regulatory developments in Washington have been a tailwind for crypto. The US Senate approved the Genius Act, which aims to regulate stablecoins and set standards for companies issuing stablecoins. The vote received strong support of 68 to 30, paving the way for such coins to become a mainstream tool for digital payments and other financial instruments.
This Act is the first to regulate cryptocurrencies. If signed into law, which is increasingly likely, it could offer more clarity and confidence around stablecoin use, encouraging wider adoption and growth.
Institutional & Whale Demand Rises
Amid these fundamental cross currents, institutional demand has remained strong. US BTC ETFs recorded an eighth straight day of inflows, attracting $2.4 billion. Over the past 30 days, BTC ETFs’ net flows have surged by 128,000 BTC, marking the largest institutional accumulation since early 2024.
The number of whales has been on the rise over the past 10 days, with an increase of 231 whale wallets. Meanwhile, whale deposits jumped from $2.3 billion to $4.59 billion in a single day. The figures reflect increased confidence among high-net-worth entities as they appear to be positioning for a price increase.
Bitcoin Technical Analysis
After reaching its all-time high of 111.9k a month ago, BTC has formed a series of lower highs. However, the downside has been limited by the 50 SMA, which has been tested on multiple occasions, highlighting its strength as dynamic support. While the RSI is just above 50, the MACD favours the bears.
Sellers would need to break below the 50 SMA to bring the 100k psychological level into focus.
Should buyers successfully defend the 50 SMA, a rise towards 110k could be on the cards.
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