Foreign media believe that although Bitcoin has recently pulled back from its recent high, in an environment where overall risk appetite has weakened, capital has instead become more concentrated in BTC. This shift is evident in both its rising market dominance and the positioning actions of certain institutions.
Funds returned to Bitcoin
The article notes that in mid-2025, Bitcoin's price approached its peak, but its market dominance declined, indicating that traders were still willing to allocate more capital to high-volatility assets like altcoins. By 2026, the situation reversed.
After Bitcoin's price pulled back from its local high, its market dominance has risen again. According to the article, this typically indicates that investors are reducing their risk exposure by moving funds away from more volatile assets and into Bitcoin, which offers greater liquidity and broader acceptance.
Institutional holdings provide support
Citing Arkham data, the article states that Morgan Stanley holds over $270 million in Bitcoin, with these inflows occurring during periods when some ETF-related participants were reducing their positions. The article concludes that large institutions continue to view Bitcoin as a core holding in the crypto market, even when risk appetite is low.
$64,000 remains a level to watch
However, the article also notes that improved market structure does not equate to a completed price recovery. At the time of writing, Bitcoin was attempting to stabilize around $63,000, with signs of a rebound emerging after oversold conditions, but the momentum remained limited.
The author notes that selling pressure has eased but has not yet fully retreated from dominance. For Bitcoin to further confirm an improvement in its trend, it still needs to reclaim and hold above the resistance level near $64,000.
In addition, the article notes that more than half of Bitcoin’s supply is currently underwater. Similar situations have historically occurred near major bottoms, but were often accompanied by one final, deeper downward pressure.