Vitalik Buterin proposes minimalism as key to layer-2 blockchain success

Bitcoin’s (BTC) rally hit a pause as prices slipped 4% from all-time highs, in a typical pullback during a bull market.

Its on-chain signals are now flashing a possible market pivot as whales become active and dormant supply begins flowing again in July.Dormant Coins Flow, Whales Strike

In its latest analysis, CryptoQuant revealed that Coin Days Destroyed (CDD) surged to 28 million this week, which indicates older Bitcoin previously held inactive is now being transferred. This pattern is historically tied to large holders repositioning near cycle midpoints or local tops.

In addition to this, Net Realized Profit and Loss (NRPL) also spiked above $4 billion in realized profits, the highest since early Q2. Such a trendreflectedsignificant profit-taking by whales and recent buyers while Bitcoin’s price hovers around $117,000-$120,000. The price action amid heavy realized profits suggests “resilient underlying demand or a delayed reaction.”

Interestingly, this wave contrasts with late June, when NRPL data showed realized losses and modest profits. It hints at capitulation by late entrants while long-term holders accumulated quietly. The current environment flips this narrative: profits now dominate while older coins flow into the market, which aligns with Q3’s institutional rebalancing phase. It also indicates that these movements are strategic rather than random.

Previously, simultaneous spikes in NRPL and CDD have preceded periods of volatility, including local tops, consolidations, or mid-cycle pauses, which means that whales and large players are coordinating activity. Whether this leads to further distribution or an extended rally will depend on follow-through in the coming weeks.

But for now, whales are active, profits are being locked in, and dormant supply is re-entering circulation. CryptoQuant stated that the market may stand at a hidden inflection point, layered beneath the surface of stable Bitcoin price action.

With whales active and dormant coins re-entering circulation, all eyes are on Bitcoin’s key levels. The recent rally to $124K and the subsequent correction have turned this level into a local top.Key Levels

Bitcoin has pulled back after hitting $123,000, a level aligning with the +1 standard deviation of the Short-Term Holder (STH) Realized Price. As such, CryptoQuant stated that the resistance now sits at $124K and $136K, the latter representing the +1 STD of holders with coins less than one month old, a cohort often linked with overbought conditions when the crypto asset approaches this band.

On the downside, $113K, which aligns with the +0.5 STD above the STH Realized Price, is emerging as a support during consolidations. Meanwhile, $111K is the average cost basis for new entrants, thereby creating a psychological floor if it corrects further. The most critical level remains $101K, the baseline STH Realized Price, which historically signals medium-term bullish structure and strongholder conviction if the crypto remains above it.

Citigroup, the third-largest banking institution in the U.S., is exploring an option to issue its own stablecoin to expand digital payment capabilities, Reuters reported citing CEO Jane Fraser.

Following an earnings call on Tuesday, Fraser reportedly informed analysts that Citigroup is exploring a "Citi stablecoin." However, the CEO said Citi is placing more value on its opportunity in tokenized deposits.

Citigroup's crypto endeavor could come in the form of managing reserves for stablecoins or providing custody services for cryptocurrencies, Fraser said.

Earlier this week, JPMorgan Chase CEO and longtime crypto skeptic Jamie Dimon said his bank is going to be involved in deposit coins and stablecoins. This confirmation follows last month's news that said JPMorgan Chase is planning to launch a stablecoin-like blockchain asset called JPMD on the Base network.

The Depository Trust & Clearing Corporation (DTCC) was also reported to be developing a stablecoin last month.

Wall Street's surging interest in stablecoins is in line with ongoing efforts in the U.S. to institutionalize and promote U.S. dollar-backed stablecoins, under President Donald Trump's strong push. 

The GENIUS Act, which aims to establish legal fundamentals for USD stablecoins, passed the Senate last month and is currently in the House of Representatives. While House lawmakers voted against advancing the bill on Tuesday, Trump said he met with key members of Congress and confirmed that they will vote in favor in the upcoming vote later today.

Standard Chartered's Global Head of Digital Assets Research Geoffrey Kendrick said Tuesday that 90% of his recent conversations with clients and policymakers in Washington, New York, and Boston were about stablecoins.

Kendrick added that once stablecoins reach a $750 billion market capitalization, they will start to impact traditional finance assets and policies. Stablecoins hold a total market cap of $257 billion, according to DefiLlama, and Kendrick predicts them to hit $750 billion by the end of 2026.

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