Ethereum’s 25% rally has fueled strong momentum in the altcoin market, pushing the TOTAL 2 market cap (excluding BTC) to $1.5 trillion.
On-chain data from CryptoQuant shows a sharp rise in BTC exchange reserves and whale inflows, indicating potential selling pressure.

As the Bitcoin (BTC) price rests around $118,000 following its all-time high last week, altcoins led by Ethereum (ETH) have emerged as the dominating force. This week is going to be crucial for the crypto market as Fed Chair Jerome Powell will share his statement on future monetary policy actions.

Powell is facing mounting pressure to resign from the Trump administration for his refusal to pivot for a potential rate cut.

Bitcoin (BTC) Price Absorbs Liquidity Sub $116,000

The Bitcoin price is currently holding steadily around the $118,000 level, while absorbing liquidity at sub-$116,000 levels earlier today. Despite strong calls for an altcoin season, the BTC price movements continue to be on investors’ radar. Popular crypto analyst Daan Crypto Trade noted:

$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.

Source: Daan Crypto Trade

Another market analyst, CrypNuevo, noted that bulls could face a hurdle on the upside, warning that short positions are building around $120,000. The analyst further added that the CME futures gap closer to $114,000 could be of greater interest for the bears.

Will BTC Price Hit Fresh Highs Before July End?

Market analysts are showing possible scenarios for the BTC price to hit fresh all-time highs before the end of July. In his message on the X platform, BitBull wrote:

$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 final leg up in Q4 and BTC will peak above $160,000.

Source: BitBull

The average July forecast on prediction platform Kalshi shows the crowd leaning toward a $124,000 target for Bitcoin. The formation of the BTC Golden Cross highlights a further bullish sentiment for the asset class.

BTC Exchange Reserves On the Rise Amid Altcoins Season Expectations

As Bitcoin’s price continues to consolidate, analysts are growing cautious about a possible correction. In recent Quicktake blog posts, on-chain analytics firm CryptoQuant highlighted two key warning signs: rising BTC reserves on exchanges and increased inflows from Bitcoin whales.

Source: CryptoQuant

During the previous cycles, BTC exchange inflows from whales topped at $75 billion. “Currently, the monthly average has just jumped by nearly $17B, rising from $28B to $45B between July 14 and 18.”

Will Fed Chair Jerome Powell Announce Interest Rate Cuts on Tuesday?

A quiet week for U.S. macroeconomic data has shifted market attention squarely onto the Federal Reserve and Chair Jerome Powell. Powell is set to deliver opening remarks on Tuesday at the Integrated Review of the Capital Framework for Large Banks Conference in Washington, D.C..

This comes as he faces growing political pressure. U.S. President Donald Trump has continued his criticism of Powell, calling for interest rate cuts and even suggesting Powell should step down. Despite the pressure, Powell has maintained a hawkish stance on monetary policy. Markets were volatile last week as speculation swirled about Trump possibly firing the Fed Chair.

Looking ahead to the Federal Open Market Committee (FOMC) meeting on July 30, investor expectations remain muted. According to the CME FedWatch Tool, the probability of a rate cut this month stands at less than 5%.

Source: CME Watch Tool

Altcoin Season on Radar

With a 25% Ethereum price rally over the past week, the altcoins market is buzzing with high trading volumes and strong investor interest. The TOTAL 2 market cap of altcoins (excluding BTC) has hit $1.5 trillion for the first time since January 2025. On a four-year time frame, this forms a classic cup-and-handle pattern, showing the potential for a strong breakout.

Altcap (TOTAL2) [2W] ready to explode into price discovery.

Massive tension built up within a 4-year Cup & Handle pattern pic.twitter.com/JHjxyxD43o

— Gert van Lagen (@GertvanLagen) July 21, 2025

Strength in Ethereum has driven notable shifts in altcoin performance, leading to a sharp decline in Bitcoin’s dominance over the total crypto market capitalization. After peaking at 66%, Bitcoin dominance has dropped significantly over the past week and is now approaching the 60% level, a potential support zone not seen since early March.

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Filed under: Bitcoin - @ July 22, 2025 3:24 pm