Foreign media believe that although Bitcoin has recently retreated from its recent highs, funds are actually flowing more heavily into BTC in an environment of weakening overall risk appetite. This change is reflected both in its regaining market dominance and in the holding activities of some institutions.

Funds return to Bitcoin

The article mentions that in mid-2025, Bitcoin's price approached its peak, but its market dominance declined, indicating that traders were still willing to invest more funds in highly volatile assets such as altcoins. By 2026, the situation had reversed.

After Bitcoin's price retreated from its local high, its market dominance has been regained. According to the article, this typically means investors are reducing their risk exposure, withdrawing funds from more volatile assets and shifting towards more liquid and widely accepted Bitcoin.

Institutional holdings provide support

The article cites Arkham data stating that Morgan Stanley holds over $270 million in Bitcoin, and that these inflows occurred during periods of selling by some ETF participants. Based on this, the article argues that large institutions still consider Bitcoin a core asset in the crypto market even when risk appetite is low.

$64,000 remains a level to watch.

However, the article also points out that improved market structure does not equate to a complete price correction. At the time of writing, Bitcoin is attempting to stabilize around $63,000, with signs of a post-oversold rebound emerging, but the strength remains limited.

The author notes that while selling pressure has eased somewhat, it has not completely receded from its dominant position. For Bitcoin to further confirm an improved trend, it still needs to recover and hold above the resistance level near $64,000.

Furthermore, the article also mentions that more than half of the current Bitcoin supply is in a state of unrealized loss. Similar situations have often occurred near important bottom areas in the past, but they are often accompanied by a final, deeper downward pressure.