Bitcoin Holds Steady Near $105,500 Despite Market Volatility

Bitcoin has maintained a steady position near its all-time high of $111,000, experiencing a 1% increase over the past month despite broader market volatility. Market observers note that the current price action appears more restrained than euphoric, contrasting with the profit-taking surge seen during the December 2024 breakout. Glassnode data indicates that long-term holders remain steadfast, with 14.7 million BTC unmoved and low realized profits, suggesting tactical trades rather than widespread selling.

As Asia opens the Wednesday trading day, Bitcoin is trading above $105,500, a slight correction from $107,000 where it sat during the U.S. business day. Despite recent geopolitical upheaval, including a U.S. strike on Iran, Bitcoin has proven resilient, remaining stable over the last month with a 1% increase. Market observers describe the current price action as more disciplined than euphoric, with long-term investors content to hold their gains. Glassnode analysts note that HODLing appears to be the dominant market mechanic, with a surge in long-term holder supply to 14.7 million BTC and historically low realized profits. Metrics like the adjusted Spent Output Profit Ratio (aSOPR) reflect this restraint, hovering just above breakeven, indicating that the coins being spent are recent acquisitions rather than broad distribution.

Meanwhile, Glassnode data shows the Liveliness metric continues to decline, reinforcing that older coins remain dormant. This patience is met with persistent institutional demand, as indicated by $2.2 billion in net inflows to BTC spot ETFs last week. These steady inflows are reshaping the market’s structure, with Bitcoin’s realized cap growing to $955 billion, suggesting real capital is moving into the asset. However, leveraged long positions have been rising, with funding rates turning positive across major perpetual futures markets. Glassnode warns that the market may need to move higher or lower to unlock additional supply, suggesting that the current equilibrium won't hold forever.

With Bitcoin barely moving after the Senate approved the White House's 'Big Beautiful Bill,' the market feels less like a stampede and more like a standoff between long-term holders who refuse to sell and short-term traders piling into leverage. Market observers are wondering where the next catalyst will come from and whether it could make Bitcoin’s next move explosive.

Design software firm Figma has disclosed a $70 million position in the Bitwise Bitcoin ETF (BITB) as part of its IPO filing. The filing shows that the board approved a $55 million BTC investment in March 2024, which has since appreciated by 27%. A separate May resolution greenlit a $30 million USDC purchase, earmarked for future conversion to BTC, bringing the total planned allocation to $100 million. Recently, a food conglomerate announced a $528 million capital raise, earmarked to buy 5,000 BTC over three years. DeFi Development Corp., the first publicly traded U.S. company with a treasury strategy built around Solana, plans to raise $100 million through a private offering of convertible senior notes due 2030. The offering, made under Rule 144A to qualified institutional buyers, includes an option for initial purchasers to acquire up to an additional $25 million in notes within 13 days of issuance.