Crypto markets continue to attract heavy institutional inflows, but analysts are warning that the rally may be losing momentum.
While Bitcoin and Ethereum remain supported by treasury-backed purchases and rising demand for Ethereum ETFs, several key indicators are signaling a potential shift in market conditions.
Billions Keep Pouring Into Crypto—So Why Could Today Mark a Major Reversal?
Actionable Market Insights
Why this report matters
Crypto markets appear strong on the surface, but not everything is as it seems.
Treasury-backed inflows are making headlines, and Ethereum ETF… pic.twitter.com/W4aRYB6DKv
— 10x Research (@10x_Research) July 29, 2025
On-chain data shows declining NAV premiums and changes in funding dynamics, suggesting that institutional players may be adjusting their positioning. Despite the broader bullish sentiment, retail investors risk entering a market that could be setting up for a near-term correction.
One notable signal comes from MicroStrategy, which has held back from raising new cash through common share offerings. Historically, such restraint has been linked to periods of reduced capital inflows into Bitcoin, pointing to possible caution among large investors.
At the same time, Ethereum-focused corporate treasuries continue to grow. Bitmine leads with $2.2 billion in ETH, followed by Sharplink with $1.7 billion, Bit Digital with $467 million, and BTCS with $216 million. Together, these holdings amount to roughly $5 billion, representing 1.06 percent of Ethereum’s circulating supply.
Additional demand may be on the horizon with The Ether Machine’s planned listing, which could add $1.6 billion in market capitalization. Although the SPAC tied to the deal initially surged 50 percent, it has since pulled back, reflecting tempered investor sentiment. As trading volumes shift and institutional strategies evolve, analysts say the market is entering a critical phase that could define its trajectory for the remainder of the summer.
Meanwhile, a report from 10x Research highlights that a large share of inflows into U.S. spot Bitcoin ETFs may be driven by short-term trading rather than long-term accumulation. Since launching in January 2024, these ETFs have recorded approximately $39 billion in net inflows. However, Markus Thielen, head of research at 10x, estimates that only $17.5 billion or about 44 percent reflects genuine long-term holdings.
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