In July 2025 Bitcoin and Ethereum are leading the crypto market. This is being powered by large institutional investments and growth in adoption. Bitcoin, which is at $118,50, of late saw only minor gains. These gains attribute to corporate treasuries and long term holders. Ethereum had a 4% increase, which took it to $3,761. For the second week in a row, it outperformed Bitcoin.
Institutional interest in Ethereum is very high at the moment. This month saw ETH ETFs report over $2 billion in inflows. This included a record breaking $727 million on July 16. BlackRock’s ETHA fund saw in almost $500 million. This is a tell of Ethereum’s growing place in institutional investment. Thus, making both Bitcoin and Ethereum key players.
Corporate participation in crypto is on the rise. Over 273 companies have jumped into the space since June. Holding both Bitcoin and Ethereum, companies like SharpLink Gaming are holding 280,706 ETH. This is above what the Ethereum Foundation is holding.
Bitcoin And Ethereum Rotation Drives Altcoin Action
Market action is becoming a trend. Ethereum outpaces Bitcoin and major altcoins, which were dormant, to become active again. XRP, BNB, and Solana gained over 2% each. In XRP’s case, this saw it hit a new all time high while seeing progress in U.S. legislation.
Bitcoin saw its dominance drop to 61%, a 6% drop in a single month. This is very much a classic early indicator of altcoin season. The Altcoin Season Index has gone up to 33. CryptoQuant’s MVRV model has been in altcoin territory for weeks. This is a first since mid-2024, impacting Bitcoin and Ethereum.
Layer at the base of the token structure SUI is up 36%, SEI at 41%, and Ethereum which is up 23%. They are the forerunners. This altcoin rally is more focused on utility than past speculative trends. This trend we saw in 2025 of meme coins taking over.
Macro Tailwinds And Regulatory Clarity Boost Outlook
The Fed is to keep interest rates at 4.25-4.50% at its July 30 meeting. This in turn will stabilize risk assets like crypto. A surprise rate cut may see the bullish trend accelerate. It will impact both Bitcoin and Ethereum positively.
In terms of regulation, the GENIUS and CLARITY Acts are at the forefront in the U.S. Congress which is to provide much needed legal clarity for digital assets. A change in global sentiment which is towards adoption of tokenization and DeFi.
As Bitcoin and Ethereum continue to do well and grow in institutional investment, reports point to a coming altcoin season. This is very much being driven by fundamentals as opposed to memes.
