Bitcoin cooled off after hitting a record high on Monday. The price dropped 5% overnight, pulling the broader crypto market down with it. Some altcoins like PUMP and BONK still managed to rise. PUMP, in particular, surged during its debut and grabbed attention despite the overall weakness.
Whale activity pointed to potential profit-taking. A wallet holding 80,000 BTC moved a large chunk to Galaxy Digital. Galaxy then sent 6,000 BTC to Binance and Bybit. These types of transfers often happen before sales. The timing lined up with Bitcoin’s recent peak above $123,000.
Bitcoin selling pressure rises but support holds
Blockchain watchers flagged a rise in the Coin Days Destroyed metric. Large BTC inflows to exchanges added to the signs of selling pressure. Still, bitcoin stayed above key support levels, showing some strength even as selling increased. Many traders see this as a healthy pause in a longer rally.
U.S.-listed spot bitcoin ETFs showed weaker demand. Monday saw only $297 million in inflows, a sharp drop from Friday’s $1 billion total. In contrast, interest in Ethereum-based ETFs grew. ETH products attracted $259 million, up from the previous day.
Analysts highlighted the slowdown in bitcoin ETF buying as a sign that some investors hesitate at current prices. Inflation data could influence the next move. Markets expect updates today and tomorrow, including the CPI and PPI reports. A surprise in either direction may shift sentiment fast.
SharpLink adds 24,000 ETH to holdings
Investors also watched legislative progress. Two bills, the GENIUS and CLARITY Acts, await a vote in the House. If passed, they could encourage deeper institutional involvement in crypto beyond just bitcoin. Elsewhere, Coinbase stock soared. It reached a new high of $398.50, pushing its market cap past $100 billion.
Ethereum saw institutional accumulation as well. SharpLink Gaming added over 24,000 ETH to its holdings, according to blockchain data firm Arkham Intelligence. Outside crypto, signs of stress appeared in bond markets. Japan’s 30-year government bond yield briefly touched 3.20%, matching a high last seen in May.
In the U.S., bond volatility climbed. The MOVE index turned higher from a support level, hinting at possible turbulence ahead. Traders remain cautious. Crypto continues to show strong structural demand, but short-term risks persist. With inflation updates and major votes on the horizon, the next 48 hours could steer the market’s tone.
