Major cryptocurrency markets experienced a pullback after reaching record highs last week, with total market capitalization temporarily falling below the $4 trillion threshold. Data shows Bitcoin prices declined 2% during Monday trading to approximately $115,000, while Ethereum, the second-largest cryptocurrency by market cap, fell about 5% over the same period, dropping below $4,300. CoinMarketCap data indicates the current cryptocurrency market has contracted to $3.9 trillion.

This pullback follows significant recent gains in crypto assets. Bitcoin reached a record high of $125,514 on August 14, while Ethereum approached its historical peak from November 2021 on the same day, with the price difference being less than $100.

Market analysts attribute this rally primarily to continued institutional investor participation, particularly through listed investment vehicles represented by digital asset funds. These institutions have driven price increases through long-term holding strategies, with Michael Saylor's strategy fund serving as an industry benchmark, currently holding Bitcoin valued at over $72 billion.

Previously, President Trump also directed the Department of Labor to consider expanding retirement account investment options to include alternative asset classes such as cryptocurrencies. The executive order also includes exploring allowing 401(k) plans to invest in private equity, news that similarly helped drive digital asset prices higher.

However, Orbit Markets co-founder Caroline Mauron notes that since reaching historical highs last week, markets have continued to experience profit-taking, with the "digital treasury" investment trend that previously drove cryptocurrency gains appearing to cool.

Notably, some publicly traded companies participating in this rally are also facing stock price pullback pressure. For example, Japanese hotel operator Metaplanet (MTPLF.US), despite holding Bitcoin valued at $2.2 billion, has seen its stock price decline approximately 50% from its mid-June peak.

Market participants consider the current pullback a normal manifestation of high-level consolidation, though institutional capital flows and macroeconomic environmental changes still require close attention. As an emerging investment category, crypto assets exhibit price volatility significantly different from traditional financial markets, and investors should be cautious of risks from rapid market sentiment shifts.