Jessie A Ellis
July 21, 2025 16:21
Bitcoin reaches an all -time high, which leads to an increase in old coins. The market dynamics are changing when Bitcoin is pause and can surpass Ethereum and XRP.
Bitcoin (BTC) has reached an unprecedented all-time high of $ 123,120 and, according to Bitfinex Alpha, has an increase of 65.3% compared to the low stalls of April. Despite these impressive rally, Bitcoin has entered a phase of side consolidation phase, which enables old coins to put in the spotlight. Large old coins such as Ethereum (ETH) and XRP have shown significant performance improvements and have been marked for months.
Altcoin market dynamics
This shift in the market fungus has led to a decline in the dominance of Bitcoin by 6.9%, the most important decline since December 2023. The market is a rotation in the direction of higher assets, a common feature of the phases of the mid-cycle expansion. As Bitcoin consolidates, it remains far above the realized cost base for 95% of the owners, which points out that the majority of the Bitcoin offer is profitable. This situation usually signals bullish phases of the late level in which the winning of short -term owners increases.
Bitcoin market position
Long -term owners have started coins for the first time since the beginning of 2024, while ETFs, retail investors and new market participants absorb the offer. This natural rotation between the holder classes shows a ripening cycle, but also introduces short -term market fragility if the buyer impulse decreases. The latest withdrawal from Bitcoin to 115,820 US dollars according to the tested +1 standard deviation volume suggests a temporary distribution phase. In order for the rally to be continued, Bitcoin has to overcome the +2σ band near 136,000 US dollars, a level that is associated with overbought conditions and top market exaggeration.
Macro economic influences
In the macroeconomic front, tariff-controlled inflation becomes increasingly clear, with the CPI (CPI) increasing by 0.3% in June and core inflation rose by 2.9% annually. This inflation pressure is based on increased import costs from China and other important US trading partners when it comes to consumer goods prices. Despite these challenges, the US individual sales turnover rose 0.6%in June, which is due to auto sales and preventive consumers before further tariffs were increased.
Institutional and global crypto developments
The institutional introduction of cryptocurrency continues to increase, with Microstrategy the first stock company over 600,000 BTC and over 73 billion US dollars has now been rated. In contrast, regulatory challenges occur, since Hungary imposed strict punishments for the non -licensed crypto trade, which means that important platforms for the suspension of services are leading. Kazakhstan also considers to include crypto allocations in its sovereign reserves.
You can find more detailed findings in the original article about Bitfinex Alpha.
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