Bitcoin hits $1 trillion in realized cap but loses near-term steam.

Altcoin gains widen, led by Ethereum as capital rotates.

Surge in derivatives signals rising speculation and risk.

Bitcoin had a strong run in July, jumping from $105,400 to a new high of $122,700. This rally pushed its realized cap, a measure of the total value of coins based on their last move, above $1 trillion for the first time. That’s a big milestone for the market and shows just how much capital is flowing into Bitcoin, according to Glassnode’s latest report.

But after hitting that high, momentum faded. Price action flattened out, with Bitcoin now moving sideways just below the record level. The move brought in a wave of profit-taking from long-term holders while also attracting new buyers.

This balance is reflected in the rising realized cap. As Bitcoin holds its ground, traders are starting to look elsewhere for returns, and that shift is turning attention toward altcoins.

Also Read: Top 3 Altcoins to Watch This Weekend: XRP, Cardano, Ethereum Set for Breakout

Ethereum Drives Altcoin Rally as Capital Rotates

With Bitcoin taking a breather, altcoins have stepped up. A signal known as the Altseason Indicator, which tracks capital flow into Bitcoin and Ethereum, stablecoin activity, and altcoin market cap, triggered on July 9. Since then, altcoin prices have climbed quickly.

Ethereum has been leading, with its price breaking past the heavy supply zone between $2,400 and $2,800. Many holders are now offloading their ETH near the $3,800 mark.

In the last two weeks, the total altcoin market cap has grown by $216 billion. This shows traders are shifting money into riskier assets in search of higher returns.

On-chain data shows ETH’s recent breakout is backed by strong fundamentals. Several valuation models place Ethereum’s fair value in the $2,500 to $3,000 range.

With the current price above that zone, it could act as support if prices dip. The next major resistance is seen around $4,500, a level that has previously marked overbought conditions.

Traders Boost Leverage as Speculation Takes Off

The rally in altcoins is being matched by a surge in derivatives activity. Futures contracts tied to Ethereum, Solana, XRP, and Dogecoin have seen open interest rise from $26 billion to $44 billion since July began.

This level of growth has held above the two standard deviation mark for 12 days straight, something never seen before. It reflects rising risk appetite among traders.

At the same time, funding costs have climbed to $32.9 million per month for long positions, close to levels seen during Bitcoin’s earlier peaks. Ethereum is also gaining ground in trading activity. Its share of open interest is now 38%, while Bitcoin’s has dropped to 62%.

More importantly, Ethereum’s perpetual volume has now surpassed Bitcoin’s for the first time since 2022, showing a strong tilt in market focus.

Also Read: Altcoins Turn to Bitcoin: Cardano and Polkadot Propose Major Treasury Swap

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Filed under: Bitcoin - @ July 24, 2025 6:30 am