Institutional Interest in Bitcoin Lacks Momentum at $58K

Recent analysis indicates that institutional interest in Bitcoin may be waning, particularly at its current price point. According to crypto analyst Markus Thielen from 10x Research, one stablecoin metric is essential for capturing this trend, but it is not currently suggesting a robust interest.

Current State of Stablecoin Minting

As of now, the seven-day minting ratio—a critical measure of stablecoin activity—has cooled significantly, which is often seen as an indicator of Bitcoin (BTC) buyer interest.

Thielen noted in his recent report that while institutions capitalized on the dip below $55,000, their engagement has lessened with Bitcoin hovering around its current price.

Institutions Awaiting Further Price Declines

Bitcoin has remained under $60,000 for at least the last 24 hours. The minting ratio evaluates the creation of new stablecoins, reflecting how much fiat currency—especially U.S. dollars—has transformed into cryptocurrency.

“Inflows of stablecoins provide a clear indication of fiat conversions into crypto, which typically flow into assets like BTC or ETH,” Thielen elaborated.

A notable spike was observed earlier in August when Bitcoin’s price fell to $49,472, where the minting ratio hit $2.7 billion. However, this figure has since dipped to $1.4 billion, even as Bitcoin remains below the significant $60,000 mark.

Thielen pointed out that while stablecoin Tether (USDT) continues to see activity, Circle—issuer of USD Coin (USDC)—has grown quieter.

Currently, Bitcoin is priced at $58,149—a slight decline of 0.35% over the last day, according to CoinMarketCap.

Furthermore, futures traders seem to indicate an expectation of further price declines, as the long-to-short ratio is slightly favoring short positions at 50.88%, according to CoinGlass.

The Crypto Fear & Greed Index has also dropped two points, currently standing at a “Fear” score of 27.

Despite a recent downturn to five-month lows, some analysts suggest that Bitcoin’s bull rally could last for another year. According to a report by Bybit and BlockScholes, analysis of previous cycles indicates a continuation of the bull run into the third quarter of 2025.

This content is for informational purposes only and does not serve as investment advice. Individuals should conduct their own thorough research before making any investment decisions.