Bitcoin, Dogecoin, Ether Could See Profit-Taking Even as Macro Conditions Improve

Bitcoin BTC held firm above $107,000 on Thursday, but signs of fatigue are beginning to surface across the broader crypto market as majors show early signs of profit-taking.

Dogecoin DOGE was down nearly 4% at 19 cents, while Tron's TRX TRX slipped 5.5% to 27 cents. XRP XRP, BNB Chain’s BNB BNB, Solana’s SOL SOL, and Cardano’s ADA ADA showed losses as much as 3%.

Ether ETH, which outperformed BTC last week amid a surge in ETF inflows and bullish derivatives activity, also showed signs of cooling off after briefly topping $2,800. While the sentiment remains largely positive, multiple tokens are now hovering near local resistance levels, prompting cautious traders to lock in gains.

Traders say the broader backdrop remains constructive. Momentum is quietly building across crypto markets, with underlying structural shifts catching the smart money’s attention.

Macro conditions in focus as IPO market becomes red hot

“Mainstream sentiment on crypto has turned around noticeably, especially on the back of Circle’s successful IPO, with Gemini and Bullish having filed their own listing intentions with the SEC recently,” said Augustine Fan, Head of Insights at SignalPlus, in a Telegram message.

“BTC treasury plays have also been in vogue with a seemingly endless stream of companies looking to copy the MSTR playbook, not to mention the stablecoin excitement both in TradFi and onchain (e.g., Plasma)," he said.

Macroeconomic developments may also be playing a role. Progress on U.S.-China trade talks and a softening inflation print have created a more favorable outlook for risk assets, some say, bolstering sentiment across equity and digital asset markets.

“The U.S.-China deal progress and softer CPI data are encouraging signs for global markets, easing inflationary pressures and creating a more stable economic outlook,” said Jeffrey Ding, Chief Analyst, HashKey Group, in a Telegram message.

“We're optimistic that digital assets will continue to grow as macroeconomic influences find resolution while institutions further integrate within the industry,” Ding added.

Kraken economist Thomas Perfumo mirrored that institutional angle.

“The broad rally in crypto markets reflects its evolving role as a macro hedge amid rising real yield volatility and growing concerns over fiscal deficits,” Perfumo said in an email to CoinDesk.

“We’re witnessing a virtuous cycle: the adoption of structural bid vehicles like spot ETFs — particularly within a more favorable U.S. regulatory environment — is absorbing supply far faster than anticipated,” he added.