Key points:
Bitcoin consolidates below 120K dollars as traders watch for a potential correction towards 114K dollars
Altcoins perform better as the BTC dominance ratio sees the largest weekly drop in 4 years
ETH ETP inflows reached 2.12 billion dollars, totaling 6.2 billion dollars for the year 2025, fueling altcoin season momentum
Fed Chair Jerome Powell speaks on Tuesday amid pressure and speculation about rate cuts
BTC reserves on exchanges are rising, signaling increased whale selling and potential corrections
1. Bitcoin in 'Wait and See' mode below 120K dollars
Bitcoin (BTC) is consolidating after reaching an all-time high of 123,000 dollars last week, retreating to around 119,000 dollars as the market enters the last full week of July. Analysts note a significant CME gap at 114,000 dollars that may be filled if liquidity-driven sell-offs occur.
According to Daan Crypto Trades and CrypNuevo, BTC is showing signs of buyer fatigue with long upper wicks and liquidation levels concentrated around 115.3K-114K dollars, which could act as magnetic zones during a correction.
2. Altcoin season momentum increases as BTC's dominance ratio collapses
Altcoins have started to outperform Bitcoin, marking what many traders now call the official start of 'altcoin season.'
Ethereum (ETH), XRP, and Solana (SOL) have all recorded significant gains.
The BTC dominance ratio has dropped from 66% to nearly 60%, the steepest decline in 4 years, according to data from TradingView.
Traders such as Rekt Capital and Henrik Zeberg say money is flowing into altcoins while Bitcoin consolidates, while Michaël van de Poppe warns that a short-term correction could occur before the next rally.
3. ETH ETPs set new records as demand from institutions surges
According to CoinShares, crypto investment products recorded a record inflow of 4.4 billion dollars last week, with Ethereum ETPs leading.
2.12 billion dollars in ETH inflow just last week - double the previous record
6.2 billion dollars total ETH inflow for 2025, now surpassing the entire year of 2024
ETH has climbed above 3,500 dollars, the highest since January
James Butterfill, head of research at CoinShares, emphasizes that 23% of Ethereum's assets under management have been added in the past 13 weeks, indicating growing institutional confidence in ETH as a core blockchain asset.
4. Powell will speak amid political pressure and uncertainty about rate cuts
As the Fed enters a quiet phase before the FOMC, Chairman Jerome Powell will deliver opening remarks on Tuesday at a regulatory conference in Washington, D.C.
Powell is facing increasing political pressure from President Trump, including calls for his resignation.
Market expectations for a rate cut in July remain low (below 5%, according to CME FedWatch)
September odds are split between no cuts and a 25 basis point cut, clouded by strong inflation data
The speech may provide indirect clues about the Fed's future stance, especially as crypto markets remain sensitive to the direction of monetary policy.
5. BTC reserves on exchanges and whale inflows signal profit-taking
On-chain data from CryptoQuant shows BTC may be entering a distribution phase:
BTC reserves on exchanges are at their highest level since June 25
Whale wallet inflows increased from 28 billion dollars to 45 billion dollars (July 14-18)
Although still below the 75 billion dollars inflow seen at previous peaks, analysts warn that this trend could signal a broader correction or adjustment.
This on-chain activity supports the idea that profit-taking is occurring, even as altcoins absorb new capital.
With Bitcoin cooling off, Ethereum leads ETP inflows, and altcoins dominate the market, the current macro environment supports an optimistic yet cautious outlook. Key risks include corrections due to the CME gap, whale profit-taking, and macroeconomic uncertainty from Powell's speech and the Fed's policy delay.
The altcoin season may have arrived, but traders are closely monitoring the increase in volatility and potential correction before the next rally.