Digital Market Analysis: Did Ethereum's rise come at the expense of Bitcoin?

Every price movement carries a story worth analyzing. In the current July, we witnessed an astonishing rise in Ethereum's price (ETH) from $2,398 to $3,850, representing an increase of 60.55%. This rapid growth sparked widespread controversy in the crypto community, with some claiming this rise was due to capital being shifted from Bitcoin (BTC) to Ethereum. But is this claim accurate?

And can we verify it using the available on-chain data?

#Technical_Analysis_and_Charts: What do the numbers tell us?

Let's start by analyzing the attached image that illustrates the relationship between "Price USD" and "Realized Cap".

First: "Price USD" (Bitcoin price in dollars):

✔️The chart shows a slight decrease in Bitcoin's price during the period from July 28 to July 29, 2025.

✔️The price recorded on July 29, 2025, at 10:18:53 UTC was $118,663.012.

Second: "Realized Cap":

✔️Unlike the price, the chart shows a clear upward trend in realized capital, reaching $1.017 trillion on the same date.

✔️This indicates that investors continue to pump money into Bitcoin, reflecting strong confidence in the market.

What does that mean?

1️⃣Realized Capital:

This indicator shows the market value of Bitcoin based on the last price at which each BTC unit was transferred on the network. Had there been a significant sale of Bitcoin to convert funds to Ethereum, we would have seen a decline in this indicator.

2️⃣But the data shows the exact opposite: Bitcoin's realized capital is on a continuous rise, even reaching an all-time high of $1.018 trillion.

#Summary:

There is no evidence of a "capital migration" from Bitcoin to Ethereum. Instead, it seems there is a new influx of capital into the market, with investments occurring in both Bitcoin and Ethereum simultaneously.

Why is Ethereum rising then?

🟢Genesis Law:

This law suggests that cryptocurrencies with strong fundamentals and advanced infrastructure, like Ethereum, naturally attract capital during growth periods.

🟡Growth of the Ethereum Ecosystem:

With ongoing developments in smart contracts, decentralized finance (DeFi), and non-fungible tokens (NFTs), Ethereum has become a preferred destination for investors seeking new opportunities.

What can we expect?

For #Bitcoin (BTC):

Price stagnation periods are often accumulation phases that precede significant rallies, as seen in previous cycles.

For #Ethereum (ETH):

The current growth reflects investor confidence in the network's future, but it is important to monitor upcoming resistance levels.

📣 In summary: Invest wisely.

✅Bitcoin still holds its position as a major digital asset, with capital inflows continuing.

✅Ethereum is witnessing strong growth thanks to technological innovations and increasing demand for its services. #Write2Earn

And if you are an investor or trader, understanding these dynamics can help you make smarter decisions. Follow the markets.

Seize opportunities, and remember that technical analysis and on-chain data are key to success in the crypto world.

Do you see new opportunities in the market? Share your thoughts in the comments.

#Bitcoin #Ethereum #CryptoAnalysis #TradingTips #Write2Earn #OnChainData