The cryptocurrency market has recently shown complex dynamics. The total market capitalization has oscillated between 3.6 trillion and 3.8 trillion USD, marking a critical consolidation phase for the market. It is noteworthy that there has been a significant divergence in the behavior of retail and institutional investors.

Retail investors seem to be withdrawing funds from mainstream encryption assets like Bitcoin and Ethereum, and are instead turning to tokens with higher risks and smaller market capitalization. This behavior reflects retail investors' pursuit of high returns, despite the greater risks involved.

At the same time, institutional investors have taken the opposite strategy. They continue to increase their holdings of core encryption assets, represented by Bitcoin, through investment tools such as ETFs. This practice reflects the confidence of institutions in the long-term value of mainstream cryptocurrencies.

Bitcoin is currently testing the 50-day moving average around the $115,000 level repeatedly, which is seen as a key support for the mid-term trend. If it can firmly hold above this level, it will lay the foundation for Bitcoin to create new highs. However, if it fails to maintain this key position, it may trigger a wave of correction.

Despite the decline in trading volume of mainstream cryptocurrencies, the trading activity of small-cap coins on decentralized exchanges (DEX) has significantly increased. This phenomenon further confirms the growing interest of retail investors in high-risk assets.

The inflow of institutional funds remains stable, with BlackRock's IBIT ETF seeing a net inflow of $42 million in a single day, demonstrating the continued confidence of institutional investors. Overall market sentiment remains neutral, the number of active on-chain addresses has increased, and the proportion of long-term holders has risen, all contributing to a reduction in market selling pressure.

The Ethereum ecosystem is also showing positive signals, with signs of recovery in its DeFi (decentralized finance) locked value and the NFT (non-fungible token) market. In addition, the increased activity in the cryptocurrency derivatives market indicates that investors are seeking structural investment opportunities.

Looking ahead, if Bitcoin can break through the current technical resistance levels and establish solid support, the market may see a new round of increases in the coming weeks. However, investors should remain cautious and closely monitor market trends, as the volatility of the encryption market remains high.