Crypto Market is seeing a shift in emotions as Bitcoin (BTC) appears to have halted its rally following a surge of nearly $123,000 to its new all-time high. Meanwhile, Ether (ETH), the second-largest cryptocurrency by market capitalization, has taken over the $3,300 mark and hints at the upcoming “altcoin season” as BTC continues to lose its market advantage.
Flagship Cryptocurrency is currently trading $119,892.22 From its peak at $122,838, ETH has made significant profits, increasing its price by more than 7% in the last 24 hours. Earlier on Thursday, Ether set a local high of $3,416 before marking its highest price level since January. The decline in Bitcoin can be largely due to long-term holders getting profits and investors spinning capital into altcoins.
However, as researchers at Deutsche Bank pointed out in a recent report, the entire crypto market is green, suggesting a merger of factors, including positive sentiment surrounding the US “crypto week.” The catalyst behind the rally.
Optimism surrounding Crypto Week Crypto Week Fuels Crypto Market Rally
Crypto Week has the potential to pass three important laws in the US. The US Stablecoins Act (Genius) has been established as a guideline for national innovation, creating the first comprehensive regulatory framework for Dollar Peg payments Stablecoins. Clear Actions of Digital Asset Market Structure (Clearity) Establish a clear market structure and designation for crypto assets, with regulatory jurisdictions divided into the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). and the anti-CBDC surveillance national law aimed at prohibiting the Federal Reserve from issuing central bank digital currency (CBDC) directly to individuals.
Voting for the bill began in the House on Tuesday, but failed to advance twice to the floor voting after several Republican lawmakers raised concerns about a law that would not include languages that explicitly banned CBDCs. President Donald Trump, who supports the bill, spoke with 12 representatives, including Rep. Marjorie Taylor Green, Anna Paulina Luna, Scott Perry, Chip Roy, Andy Harris, Andy Scullyse, Keith Self, Eli Crane, Andrew Clyde, Michael Scullyse, Michael Scullyse, Michael Scullyse, Andy Harris, Andy Scullyse, Chip Roy and Chip Roy.
Following the lengthy standoff and subsequent negotiations, the House will clear all procedural hurdles and vote for key cryptocurrency laws on Thursday. Trump hopes that the three bills will pass by the House and Senate before they are sent to his desk, before the law is signed by the end of the week.
The ETH price reaches $3,400.
Meanwhile, the surge in ETH prices came amid a record influx of nine US spots, Ethereum ETFs. On Wednesday, funds tracking spot prices for ether saw an influx of $726.74 million daily, leading to $499 million by BlackRock’s iShares Ethereum Trust ETF (ETHA). According to Sosovalue, all funds except the greyscale Ethereum Trust ETF (ETHE) reported a positive flow for the day.
In July so far, Ether ETFs have collected a total net inflow of $2.27 billion. With total net worth worth $16.4 billion, these funds collectively manage 4% of ETH’s total market capitalization, indicating that they are currently considered long-term institutional assets, not just trading vehicles.
BTC Markets analyst Rachel Lucas pointed out that compared to Bitcoin’s $2.5 billion daily trading volume, bullish chart setup and capital turnover, Ether presents breakouts driven by both the market foundations and the sentiment of investors.
LVRG Research Director Nicklack said ETH’s current momentum is driven by an increase in publicly listed companies holding cryptocurrencies as financial assets. This week, Sharplink Gaming became the largest corporate holder of Crypto Asset, with 280,706 ETH, holding reserves worth $962.36 million at current rates, surpassing the Ethereum Foundation stockpile. The US-based online affiliate marketing and sports betting company purchased another 20,297 ETH on Wednesday.
Bitcoin’s advantage continues to decline as analysts predict the “Altcoin season”
Bitcoin’s domination over the crypto market is slipping, according to several analysts and crypto traders. Historically, this pattern portends the Altcoin season. In their latest Altcoin analysis, renowned trader “Jelle” highlighted a breakout from the extremely bullish continuation cup and handle set up that is formed in a total of 3/USD weekly price charts.
Total 3 represents the total market capitalization of all cryptocurrencies except Bitcoin and Ether.
They said the break above the pattern neckline could increase by about 100% at $1.1 trillion, pushing up $1.98 trillion. On X-Post Thursday, Gel said the altcoin escaped from the multi-year cup and handle. He added, “the final hurdle to overcome before everything gets hooked.”
Veteran trader Peter Brandt observed a similar pattern on a weekly price chart with a total of two, referring to the total market capitalization of all cryptocurrencies except Bitcoin. The target for this pattern is $2.78 trillion, representing a rallies of 97% of AltCoin’s total market capitalization. He officially declared it was Altcoin season.
Jelle and Brandt’s positive outlook comes as Altcoins has registered its strongest performance against Bitcoin since November 2024, escaping the two-month downward trend. The fuel for the rally suggests a 24% growth in ETH over the past week, as well as a capital turnover from BTC to other cryptocurrencies.
Bitcoin dominance, a metric that measures Bitcoin’s market share compared to the entire crypto market, is commonly used to indicate the start of the Altcoin season. It reflects the overall investment sentiment and risk appetite in the crypto market. The indicator has been on a downward trend since June 27th, hitting an eight-week low of 62.61% on Thursday.
Several analysts report that Bitcoin’s market advantage has already peaked after Altcoins began pushing higher. Blockchain Centre’s Altcoin index tripled from June 22nd, but only 39% of the top 50 Altcoins, which have surpassed BTC in the past three months, surpassed BTC. For the Altcoin season to officially begin, 75% of Altcoins must surpass Bitcoin.
