- Ethereum’s July rally is driven by new institutional inflows, not Bitcoin rotation.
- Bitcoin remains in a consolidation phase, affecting altcoin momentum.
- Regulatory green lights for ETFs signal growing mainstream adoption.
Ethereum has experienced a remarkable rally of over 50% in July, rising from $2,398 to nearly $3,850. Contrary to the belief that this surge is due to capital shifting from Bitcoin, on-chain data shows Bitcoin’s Realized Cap has reached an all-time high of $1.018 trillion.
The recent approval of in-kind creations and redemptions for spot Bitcoin and Ethereum ETFs by the U.S. SEC is a game-changer. This regulatory shift enables these crypto assets to behave more like traditional ETFs, lowering operational barriers for institutions.
Ethereum Gains Ground on Institutional Support While Bitcoin Faces Crucial Breakout Test
Ethereum’s rally is not just about price—it signals a shift in perception. Long seen as the tech-focused alternative to Bitcoin, Ethereum’s smart contract ecosystem is now drawing institutional capital at an unprecedented rate. The $1.2 billion allocation from BlackRock underscores growing confidence in Ethereum’s future utility beyond a speculative asset.
Meanwhile, Bitcoin is trapped in a narrow range between $114,750 and $123,250. This stagnation is making altcoin investors uneasy. Analysts like Altcoin Sherpa warn that without a decisive move from Bitcoin, the broader altcoin market could suffer a steep correction, possibly falling 10% to 30%. Bitcoin’s inability to break out of this range reflects hesitation in the market, despite strong fundamentals.
Glassnode data reveals that short-term holders are significantly influencing Bitcoin’s next direction. Many investors have accumulated BTC within this tight range, creating a psychological and financial battleground. If Bitcoin breaks down below $114,750, it could spark panic selling—not just for BTC but across the altcoin market as well.
The future of crypto ETFs may help resolve this uncertainty. With the SEC’s recent nod to mixed BTC-ETH exchange-traded products and options on spot BTC ETFs, the line between traditional and crypto finance continues to blur. This evolution could lead to more consistent inflows across major cryptocurrencies, reducing volatility and encouraging long-term holding.
Ethereum’s surge reflects growing institutional trust and strategic inflows, while Bitcoin’s indecision continues to steer overall market sentiment.
“The trend is your friend until the end when it bends.” — Ed Seykota
