"Bitcoin's $100K Surge: VC Funding Soars, Institutions Dive In, But Distribution Phase Looms"

Bitcoin's recent surge has sparked a wave of investment in the cryptocurrency sector, with venture capital (VC) funding reaching unprecedented levels. According to a recent report, VC investments in the cryptocurrency industry are on track to surpass $18 billion by the end of 2025, driven largely by Bitcoin's dominance and growing institutional interest.

Bitcoin's price rise, which has seen it cross the $100k mark, has been a significant factor in attracting both retail and institutional investors. The cryptocurrency's impressive growth has led many analysts to declare it in the late stages of its bull market, but some experts warn that Bitcoin could be entering the early distribution phase, signaling a potential cooling period in the market.

The Dow Theory, a useful framework for understanding market cycles, divides market movements into two key phases: accumulation and distribution. Historically, Bitcoin has followed this cyclical pattern, with 2022 marking a clear distribution phase and 2023-2024 characterized by an accumulation phase. The current market phase, which began in 2025, is an early distribution phase, marked by increased market activity and renewed interest from retail investors.

The role of retail and institutional investors has been pivotal in shaping the current market dynamics. Despite Bitcoin reaching its six-figure milestone, retail participation continues to grow, providing liquidity and driving demand in the market. Meanwhile, institutional players, such as MicroStrategy, remain crucial in shaping Bitcoin's trajectory. In early 2025, the company added 10,107 bitcoins to its balance sheet, bringing its total holdings to 471,107 units, signaling confidence in Bitcoin's long-term potential.

Despite entering the distribution phase, Bitcoin's current price structure suggests that the market is far from overheating. Analysts believe there is still room for growth, with the market in the late stage of the bull run but not yet at its peak. The Bitcoin Funding Rate remains relatively low, mirroring levels last seen in the summer of 2024, indicating a stable leverage environment and supporting further spot price discovery. Bitcoin's calculated "fair price" sits at $87.99K, serving as a crucial support level. As long as prices stay above this threshold, the bull market remains intact.

The advances Bitcoin has made in the recent bull market reflect an evolving