Bitcoin dominance has dropped to 61.6%, its lowest level in three months, just as Ethereum surged to a six-month high and the global crypto market cap topped $4 trillion. This marks the most decisive capital rotation into altcoins since April, suggesting the early stages of a new alt-season.
What’s Happening
BTC Dominance Breaks DownBitcoin’s share of the total crypto market fell below its key ascending channel for the first time in 2025, closing at 61.6% on July 18. After peaking at 66% in June, the move is a symbolic shift, historically seen as a green light for altcoin outperformance.Ethereum Outperforms on All FrontsEthereum hit $3,675 intraday, its highest level since January. The ETH/BTC ratio logged a 3.4% gain on July 16, its biggest daily move in six months, fueled by ETF inflows and fresh policy tailwinds out of Washington.ETF Flows Confirm Institutional RotationSpot ETF inflows into Ethereum jumped 36% month-to-date, outpacing Bitcoin’s 10% gain. BlackRock’s ETHA is seeing accelerating interest, likely reflecting institutional efforts to rebalance toward higher-beta assets now that BTC’s explosive rally has paused.Sideways Bitcoin Gives Alts Room to RunBitcoin drifted 0.7% lower this week to $118,961, just off its $123,153 all-time high printed on July 14. Its consolidation at elevated levels creates a window for altcoins to rally without triggering broad risk-off sentiment.Macro Context Aligns with RotationCongress passed a stablecoin bill this week, bolstering Ethereum’s role in on-chain finance and treasury management. With BTC no longer the only regulatory darling and altcoin ETF infrastructure maturing, investors appear more comfortable chasing returns beyond Bitcoin.
The Big Picture:The market is entering a phase of capital expansion. The total crypto market cap surpassed $4 trillion for the first time, emphasizing broad-based participation. As BTC dominance falters, ETH strength and ETF flows are leading. For the first time since 2021, alt-season isn’t a meme but a measurable macro shift.
Key Data
BTC Dominance: 61.6% (lowest since April)ETH Price: $3,601.40 (6-month high)BTC Price: $118,961 (off 3% from ATH)Crypto Market Cap: $4.003 trillion (+7% WoW)ETF Flows: ETHA +36% MTD vs. IBIT +10% MTD
A decisive rotation is underway. Altcoin bulls have a clear runway, so long as BTC remains stable and institutions continue to follow the Ethereum flow.
