Whales Driving Crypto Moves?

Before last week's slowdown, an unwavering surge of positivity was boosting the nearly $4 trillion cryptocurrency market, fueled by a flurry of policy actions from Washington that are hastening its integration into regulated finance.

The enactment of a significant stablecoin regulation and the overall legislative progress have brought fresh credibility to the industry, boosting prices and reviving interest in digital assets.

Indicators of renewed activity in the retail sector were emerging. According to data tracker Sensor Tower, Coinbase’s app climbed to the fifth position in Apple’s Finance category, a significant rise from its previous rank of 25th just a month ago. Interest in Bitcoin was on the rise, as evidenced by increasing search activity on Google.

During Washington’s “Crypto Week,” Telegram groups and Discord forums experienced vibrant discussions, marking a well-orchestrated policy initiative that concluded with President Donald Trump enacting the first significant US stablecoin framework into law.

That increase in visibility, however, obscures a more intricate understanding of the individuals truly influencing the movements.

Although consumer interest is resurgent, the structure of the rally is clearly driven by institutional players. Significant private entities—those possessing 10,000 Bitcoin or more—accumulated approximately 47,000 tokens before Bitcoin reached its peak of around $123,000 on July 14, according to data from 10x Research. Since that time, these significant stakeholders have started to reduce their positions, leading to a decline to approximately $118,600.

Market momentum continues to reflect this institutional influence. Digital asset investment products saw $1.9 billion in inflows last week, bringing month-to-date inflows to a record $11.2 billion, according to CoinShares. At publication time, Bitcoin was trading at $118,870.73, largely unchanged in the past 24 hours and trading in a tight range over the past week.

Re-engagement significantly picked up around a month ago, following the impressive initial public offering in June by Circle Internet Group, as noted by Chris Rhine, who leads liquid active strategies at Galaxy Digital.

The recent moves highlight a significant change in the forces influencing price movements—and the implications of this shift are crucial. Companies holding Bitcoin in their treasuries and asset management firms are now capturing the inflows that previously moved through separate wallets. The retail sector remains present, yet its impact is now being directed through structured products rather than through direct engagement in the market.

This shift is particularly evident in ETF flows. On July 28, spot Bitcoin ETFs saw a total net inflow of $157 million, marking the third consecutive day of net inflows. The largest inflow came from BlackRock's ETF, IBIT, which recorded a net inflow of $147 million, underscoring how retail money is increasingly moving through institutional vehicles.

The question of whether this signifies a lasting shift is still up for discussion. Proponents of increased participation from established financial entities contend that these firms contribute essential liquidity, reduce volatility, and foster more consistent market behavior. They view the establishment of professional standards as essential for the integration of cryptocurrency into the broader global capital markets.

Critics argue that excessive institutional involvement threatens to compromise the core values that underpin cryptocurrency. The prevalence of ETFs and regulated intermediaries in the market could potentially diminish the vibrant engagement that initially drove their adoption. Concerns are emerging that innovation and open access may be adversely affected as capital shifts towards restricted investment vehicles.

Negative sentiment was clearly reflected in the derivatives market. An unnamed speculator bet approximately $5 million in premium on the Deribit exchange to acquire Bitcoin put options set to expire on August 8, with a strike price of $110,000, as reported by prime broker FalconX, which executed the transaction.

There is potential for a resurgence in mass retail involvement. However, currently, the market's direction is being influenced not through Telegram discussions or trading platforms, but rather from the offices of conventional finance.

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How Nook is Simplifying DeFi Lending & Making Crypto Accessible to the Masses

In this episode, we dive into the world of crypto payments with Joey Isaacson, CEO and co-founder of Nook . Joey Isaacson shares his journey from working at tech giants like Facebook and Uber to entering the crypto space through Coinbase. He discusses the challenges and opportunities in making crypto accessible to the masses, focusing on simplifying DeFi lending and the importance of user-friendly design.

Access the episode from your preferred podcast platform here .

Blockcast is hosted by Head of APAC at Ledger, Takatoshi Shibayama . Previous episodes of Blockcast can be found here , with guests like Kapil Duman (Quranium), Eric van Miltenburg (Ripple), Davide Menegaldo (Neon EVM), Jeremy Tan (Singapore parliament candidate), Alex Ryvkin (Rho), Hassan Ahmed (Coinbase), Sota Watanabe (Startale), Nic Young (Oh), Jacob Phillips (Lombard), Chris Yu (SignalPlus), Kathy Zhu (Mezo), Jess Zeng (Mantle), Samar Sen (Talos), Jason Choi (Tangent), Lasanka Perera (Independent Reserve), Mark Rydon (Aethir), Luca Prosperi (M^0), Charles Hoskinson (Cardano), and Yat Siu (Animoca Brands) on our recent shows.

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