Ethereum fuels altcoin momentum as Bitcoin holds $119K

Bitcoin traded throughout most of today’s Asian trading session despite market euphoria around the signing of the Genius Act. In the meantime momentum continued favoring altcoins with Ethereum leading the charge. The total crypto market capitalization had rallied nearly 2.5% to $4.05 trillion when writing, with the crypto fear and greed index still hovering over 70 within greed territory but down one point from the previous session. In contrast, the altcoin season index, which tracks the performance of top altcoins against Bitcoin, shot up 20 points to hit 52, suggesting that altcoin season may have begun. What’s next for Bitcoin? Bitcoin was hovering near $119,000 at press time, up just 0.3% over the past 24 hours. While the world’s largest cryptocurrency remained in a consolidation phase after last week’s all-time high of $123,166, attention appeared to shift toward altcoins as investors positioned for sector-specific gains. Several large-cap cryptocurrencies like Ether outpaced Bitcoin. Ether rose 3.5%, XRP gained 3.1%, Solana surged 6.3%, and Dogecoin rallied 8.7%. Analysts tied the rotation to recent legislative developments, particularly the signing of the Genius Act, which introduced new federal guidelines for stablecoins and banned yield-bearing versions. According to Deutsche Bank’s Marion Laboure, the Genius Act’s ban on interest-bearing stablecoins is drawing institutional flows into Ethereum, given its central role in stablecoin infrastructure. The legislative momentum has further heightened expectations that Ethereum and similar assets may see greater regulatory clarity and benefit more directly from the new framework. Meanwhile, the Clarity Act, another major bill that seeks to define the legal classification of cryptocurrencies, was recently approved by the House and is now awaiting Senate passage. The bill could shape the regulatory landscape for digital assets by clarifying whether tokens are securities or commodities. Bitcoin’s next move may depend on how quickly the Clarity Act progresses through the Senate ahead of the August recess. Another potential catalyst comes Tuesday, when a presidential working group is expected to unveil new policy recommendations, possibly including a strategic Bitcoin reserve proposal. Despite subdued price action, analysts are still watching Bitcoin in hopes of further gains. According to some analysts, technical developments, such as the rapid closure of CME futures gaps, are signs of continued market discipline. For instance, analyst Trader Daan Crypto Trades, on X, pointed out that this marked the sixth consecutive week such gaps were closed early in the week. Daan Crypto Trades @DaanCrypto · Follow $BTC Closed its CME gap straight away after futures opened.That’s now it’s 6th week in a row where any gap that was created was closed on Monday or really close to it.Ready for a new week 🤝 12:02 PM · Jul 21, 2025 400 Reply Copy link Read 55 replies Still, concerns of a short-term pullback have emerged. Exchange-held Bitcoin reserves rose to their highest level since late June, suggesting increased profit-taking. Data from CryptoQuant also revealed that inflows from large holders have been rising, with a monthly average growing from $28 billion to $45 billion between July 14 and 18. While those inflows remain well below the $75 billion seen during previous market tops, the trend has caught analysts’ attention. Contributor ShayanMarkets warned that this uptick in exchange reserves could weaken buy-side pressure and signal an upcoming correction. At the moment, market sentiment also remains sensitive to macroeconomic developments. Federal Reserve Chair Jerome Powell is set to speak Tuesday amid political pressure from President Trump, who has called for lower interest rates. Although a rate cut is unlikely at the upcoming July 30 FOMC meeting, the event remains on traders’ radar. As such, for Bitcoin, short-term expectations remain mixed. However, according to pseudonymous trader and analyst BitBull, there may still be some more room for Bitcoin to run. See below. BitBull @AkaBull_ · Follow $BTC is going through a consolidation phase after a new ATH.This is actually a good thing as alts are rallying during this.But I think BTC another leg up will start within 2-3 weeks.This will pump BTC above $130K and will also mark the local top.After that, there’ll be a 1:54 PM · Jul 20, 2025 438 Reply Copy link Read 104 replies The analyst expects Bitcoin to make another leg up within the next two to three weeks, potentially pushing above $130,000 before peaking near $160,000 in Q4. Until then, altcoins are likely to continue drawing capital, riding the tailwinds of favourable regulation and market rotation. Altcoin season is here Momentum has clearly shifted toward altcoins, with Ethereum at the forefront of the rally. Over the past week, Ether and XRP led the early charge, and the broader altcoin market is now following suit as traders rotate capital out of Bitcoin and into higher-beta assets. Market watchers say this behaviour mirrors historical altseasons, where Bitcoin cools off after setting new highs, allowing other tokens to outperform. According to trader Rekt Capital, Bitcoin’s current range-bound consolidation is facilitating further money flow into altcoins. The effects are becoming evident in Bitcoin’s dominance, which dropped sharply from a recent high of 66% to just below 60% at press time. This is its lowest level since early March and marks one of the largest weekly declines in recent years. Bitcoin market dominance. Source: CoinMarketCap. As Bitcoin’s dominance weakens, analysts are watching whether the 60% level holds as support. A further breakdown could intensify the altcoin rally, especially if macro and legislative factors continue to support the sector. The total market capitalization of all altcoins rose 2.5% over the last 24-hour session to $1.66 trillion as of press time. Ethereum’s recent gains appear to be fueling broader altcoin strength, a trend many market watchers were analyzing more closely. In a July 20 post on X, analyst Gert van Lagen highlighted that Ethereum’s current price structure mirrors a pattern previously seen in the Dow Jones Industrial Average (DJIA). At the center of his analysis is what he describes as a “textbook expanding diagonal”, a broadening megaphone pattern characterized by diverging trendlines. According to van Lagen, Ethereum has repeatedly rebounded from the lower boundary of this formation since mid-2022, including a major 245% rally from November 2022 to February 2024. ETH/USD bi-weekly chart with megaphone structure. Source: Gert van Lagen. As of now, ETH is trading roughly in the middle of this range after rebounding from the lower trendline back in March. The analyst projects that Ethereum could climb toward the upper boundary of this pattern near $8,000 by early 2026. Van Lagen also noted that Ethereum has entered the fifth and final phase of an Elliott Wave cycle, typically marked by heightened volatility, as momentum accelerates with late-stage buyer FOMO into the market. For, van Lagen, the long-term price target for ETH could be as high as $18,000 if this price action continues follow this structure. Gert van Lagen @GertvanLagen · Follow Replying to @hh2024174773 Wave c is impulsive and can blow off way beyond the expanding wedge. My main-target remains ~18k$But based on this chart at 8k-10k I will be very closely monitoring the market to assess whether the final impulse is final or not 11:23 AM · Jul 20, 2025 10 Reply Copy link Read 1 reply While such bullish targets remain far off for now, strong inflows into spot Ethereum ETFs as seen over the past two weeks could continue to serve as a major tailwind for ETH’s price. Inflows into these products nearly triple this month, raking in over $3.2 billion. Although Ethereum’s back in action, several large-cap altcoins have outperformed the second-largest cryptocurrency in the past 24 hours. Leading the gains were Conflux (CFX) up over 30%, followed by Pudgy Penguins (PENGU) with 21.7%, while Ethena (ENA) had locked in gains of approximately 20% at publication time. See below: Source: CoinMarketCap. The post Ethereum fuels altcoin momentum as Bitcoin holds $119K appeared first on Invezz

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