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Bitcoin Holds Steady Above $105K Amid Geopolitical Uncertainty and Institutional Demand
As Asia’s markets open on Wednesday, Bitcoin (BTC) is trading just above $105,500, having pulled back slightly from the $107,000 level reached during the U.S. session.
Despite recent geopolitical tensions—including a surprising U.S. strike on Iran that caught both experts and prediction markets off guard—Bitcoin continues to demonstrate resilience as a store of value. CoinDesk data reveals that BTC has remained relatively stable over the past month, posting a modest 1% gain.
Market participants note that Bitcoin’s current price, hovering near its all-time high of $111,000 set in May, reflects cautious optimism rather than outright euphoria. Unlike the surge past $100K seen in December 2024, which sparked significant profit-taking, long-term holders now seem comfortable maintaining their positions. Glassnode’s weekly report highlights this trend.
“HODLing dominates the market,” Glassnode analysts observed, pointing to a record 14.7 million BTC held by long-term investors and historically low realized profits. On-chain metrics indicate limited selling interest even with prices near historic peaks.
The adjusted Spent Output Profit Ratio (aSOPR), which measures coin profitability upon spending, remains just above breakeven, suggesting recent sales come from short-term traders rather than large-scale liquidation.
Additionally, Glassnode’s Liveliness metric continues its downward trajectory, signaling that older coins are staying off the market.
Institutional interest remains robust as well. QCP Capital reported $2.2 billion in net inflows to Bitcoin spot ETFs last week, describing the market tone as “constructive.” Investors such as Strategy and Metaplanet are actively accumulating.
These steady inflows are gradually transforming Bitcoin’s market structure. The realized capitalization—the value of coins at their last movement—has climbed to $955 billion, reflecting increased genuine capital investment beyond speculation.
However, underlying risks persist. QCP notes a rise in leveraged long positions, with funding rates turning positive across major perpetual futures contracts.
Glassnode cautions that the market may require a significant price move, either upward or downward, to unlock additional selling supply. The current balance between steadfast long-term holders and short-term traders using leverage may prove temporary.
After the Senate approved the White House’s “Big Beautiful Bill,” Bitcoin’s price action has been more of a stalemate than a rush, with long-term holders unwilling to sell and speculators increasing leveraged bets.
This delicate balance has analysts watching closely for the next market catalyst that could spark a decisive move.
Figma Reveals $70M Bitcoin ETF Holdings in IPO Filing
Design software company Figma disclosed in its IPO paperwork a $70 million investment in the Bitwise Bitcoin ETF (BITB). The board approved a $55 million BTC purchase in March 2024, which has appreciated roughly 27% since.
A subsequent resolution in May authorized acquiring $30 million worth of USDC for future Bitcoin purchases, bringing the total planned BTC allocation to $100 million.
Hong Kong’s DDC Enterprise Raises $528M to Acquire Bitcoin
Hong Kong-based food conglomerate DDC Enterprise announced a $528 million capital raise aimed at buying 5,000 BTC over the next three years.
DeFi Development Corp. Plans $100M Convertible Note Offering to Boost Solana Holdings
DeFi Development Corp., the first publicly traded U.S. firm with a Solana-focused treasury strategy, revealed plans to raise $100 million through a private offering of convertible senior notes due in 2030. The offering, made under Rule 144A to qualified institutional buyers, includes a 13-day option for purchasers to buy an additional $25 million in notes.
Market Overview:
- BTC: Bitcoin holds near $106K, with on-chain data showing long-term holders largely inactive.
- ETH: Ethereum faced strong selling pressure after failing to surpass $2,522, closing a volatile session with a 4.5% trading range.
- Gold: Gold prices climbed over 1% on Tuesday amid a weaker dollar and ongoing global trade uncertainties, with spot prices reaching $3,357.85 and futures at $3,353.80.
- S&P 500: U.S. stocks ended mixed on Tuesday, with the S&P 500 slipping 0.11% to 6,198.01 as investors rotated out of tech shares.
