Altcoins reclaim the spotlight amid macro pressure

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Markets stayed on edge this week as inflation and trade tensions persisted, but crypto held steady. The sticky U.S. inflation and renewed tariffs have kept the Federal Reserve cautious, with rate cuts still off the table. Bond yields jumped, equities were mixed, and crypto traded in a narrow range - showing resilience and signs of sector rotation.

A key turning point came from Washington, where lawmakers passed the GENIUS Act, giving stablecoins clearer legal footing. It’s a shift toward proper policy frameworks, and one that could pave the way for broader adoption. With macro policy still in flux, investors are watching for signs of renewed momentum, or a deeper consolidation phase.

State of Crypto

• Bitcoin hovers below US$120K after strong run
• Ethereum leads majors as ETF inflows surge
• Solana lifts off on DeFi gains & investor optimism
• XRP spikes on ETF chatter & whale activity
• Capital rotation triggers pullback in BTC dominance

Bitcoin hovers below US$120K after strong run

Bitcoin sat just below US$118K this week, consolidating after its early July breakout. Resistance remains at US$120K-123K, with support around US$114K–116K. These levels are in focus as traders brace for potential volatility.

On the daily chart, BTC remains in a broader uptrend, supported by its 50- and 100-day moving averages. Momentum has cooled, with the RSI hovering around neutral. Traders appear to be in a wait-and-see mode, holding out for stronger macro or ETF signals before making directional bets.

ETF flows reflect this caution. Bitcoin spot ETFs saw US$199M in outflows this week, a reversal from last week’s inflows. While total AUM remains strong at US$154.8B, the slowdown suggests some capital is rotating out - possibly toward Ethereum.

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Ethereum leads majors as ETF inflows surge

Ethereum outperformed this week, rising from US$3,300 to nearly US$3,860 on the back of US$2.56B in spot ETF inflows. Total AUM now sits at US$19.85B, reinforcing ETH’s growing appeal to institutional investors.

Much of the recent buying appears to be from large holders, with a significant portion staked. This has tightened liquid supply and strengthened the narrative of Ethereum as a yield-generating platform.

However, volatility remains a risk. A sudden liquidation event wiped out nearly US$1B mid-week, briefly pushing ETH lower before the recovery resumed. With Bitcoin dominance slipping and institutional demand building, ETH is well-positioned, though some consolidation may be needed after the strong move up.

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Solana lifts off on DeFi gains & investor optimism

Solana (SOL) rallied toward US$200 this week before easing to around US$190, driven by renewed interest in DeFi and increased rotation into altcoins. Analyst sentiment has turned more positive, and capital continues to flow from Bitcoin into high-conviction Layer 1s.

Short-term momentum looks strong on the 4-hour chart, supported by the 50-EMA. RSI has cooled from overbought levels, signalling a possible pause. On the daily chart, the uptrend remains intact, with key support levels at US$158 and US$144 holding firm through recent dips.

Solana continues to rank among the top three chains by active addresses and DeFi total value locked - offering solid fundamentals. Institutional activity is still light, but the ecosystem’s growth is gaining attention from retail investors.

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XRP spikes on ETF chatter & whale activity

XRP briefly surged to US$3.20 this week before settling near US$2.95. The rally followed reports of large-scale accumulation, particularly from South Korean exchange Upbit, alongside renewed speculation around potential XRP ETFs.

The U.S. SEC has paused its review of XRP-linked ETF proposals from Bitwise and Grayscale, which created some near-term uncertainty. However, legal analysts suggest the SEC may drop its appeal in the Ripple case - a move that could open the door for future approvals. XRP continues to benefit from legal clarity in the U.S. It is becoming a preferred option for compliance-focused traders.

On-chain data shows increased wallet activity and growing positions among mid-sized holders. Technically, XRP looks extended in the short term, with RSI near 80 and resistance at US$3.30. Support sits around US$2.60. A period of consolidation may follow before the uptrend resumes.

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Capital rotation triggers pullback in BTC dominance

Bitcoin dominance dropped sharply this week to 62.1%, down from 66%, as funds flowed into Ethereum, Solana, and XRP. The move reflects growing interest in altcoins backed by strong narratives and institutional participation.

While Bitcoin remains the market anchor, altcoins are gaining traction in regulated investment products - a trend visible in both price performance and ETF flows.

If this shift continues, traders may see further upside in altcoins with regulatory clarity and active ecosystems.

Crypto Fear & Greed Index

Source: Fear & Greed Index

BTC Markets in the news

Friends With Money: Bitcoin bullet train

Bitcoin has notched yet another record high, but can the bull market continue or will prices come back down to earth? On this recent episode of the Friends With Money podcast, Money’s Tom Watson was joined by Charlie Sherry, Head of Finance at BTC Markets, to discuss the latest surge in the price of Bitcoin and the drivers behind it.

The Block: Crypto market cap tops $4 trillion for first time, solidifying major asset class position

The entire crypto market capitalization surpassed the US$4T mark for the first time last Thursday. The wider crypto market has recently rallied on the back of extensive institutional demand and legislative advancements in the U.S.

"[Altcoins] posted strong gains, as traders rotate capital from bitcoin into higher-beta assets, a pattern typical of late-cycle rallies, but this time underpinned by improved technology and fundamentals," said BTC Markets Crypto Analyst Rachael Lucas.

Announcements

New mobile app release is now live: Track your profit and loss

The first iteration of our profit and loss feature is now available in the latest version of the BTC Markets mobile app.

This new release gives you greater visibility into how your portfolio is performing. You can now view your unrealised profit and loss by asset and overall, track changes over time with dynamic charts, review your historical cost base and holdings value, and choose to hide or show zero-balance assets.

Update your app or download the latest version from the App Store (iOS) or Google Play Store (Android).

Note: iOS users will need to be on iOS 17 or higher. Learn more.

Simplify your crypto taxes with exclusive discounts

BTC Markets has partnered with Crypto Tax Calculator, Koinly, and Syla to bring exclusive deals on crypto tax software. These platforms provide ATO-compliant reports, integrate with wallets and exchanges, and include features for different investor types. Save time and money this tax season with tools that make reporting simpler.

For more details on crypto tax reporting, read our tax blog or visit our support page. 

Explore the new BTC Markets – now in Beta

Our refreshed trading platform is now live in Beta, with card deposits now available.

Built from the ground up with your feedback, this new platform is designed to make crypto investing more intuitive, whether you’re just getting started or looking for a cleaner, faster way to manage your portfolio.

What’s new?

• A streamlined interface for clarity and ease of use
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The original BTC Markets exchange isn’t going anywhere; it remains fully available for advanced trading. You can switch between platforms at any time.

This is just the beginning. We’d love for you to explore the new experience and share your feedback.

Try it now

Explore the new BTC Markets experience.

BTC Markets CEO to speak at Stripe Tour Sydney 2025

We're proud to share that our CEO, Caroline Bowler, will be a guest speaker at Stripe Tour Sydney 2025, held at the International Convention Centre on Thursday, 11 September 2025.

She’ll share insights on the future of commerce and the transformative potential of stablecoins for cross-border trade, alongside other leaders in digital payments.

Stay tuned as we share more in the lead-up to the event.

The week ahead: economic events

Thursday, July 24th 

• Germany GfK Consumer Climate, Manufacturing PMI
• United Kingdom Manufacturing PMI, Services PMI
• Euro Area Deposit Facility Rate, Interest Rate, Press Conference

Friday, July 25th 

• United Kingdom Retail Sales MoM
• Germany Ifo Business Climate Index
• United States Durable Goods Orders

Tuesday, July 29th

• Spain GDP Growth Rate, GDP Annual Growth Rate
• United States Job Openings

Wednesday, July 30th

• France GDP Growth Rate, GDP Annual Growth Rate
• Germany GDP Growth Rate, GDP Annual Growth Rate
• Italy GDP Growth Rate, GDP Annual Growth Rate
• Euro Area GDP Growth Rate, GDP Annual Growth Rate
• United States GDP Growth Rate
• Canada Interest Rate

Source: Trading Economics

Market reflections

• United States: Tariffs reignite inflation concerns
• Eurozone: Stability holds, but trade tensions rise
• China: Growth slows as stimulus kicks in
• Japan: Economic pulse slows, policy unchanged

United States: Tariffs reignite inflation concerns

June data shows inflation is picking back up, with CPI at 3.0% and core PCE at 2.3%. The pressure is building in everyday items like electronics and appliances - categories hit hard by new tariffs. The average tariff rate has surged to 20.6%, up from 3% earlier this year. Analysts say if those costs flow through to consumers, inflation could break above 4% in the months ahead. Markets are still holding out for two rate cuts this year, but the Fed isn’t rushing. Comments from key officials suggest rates may stay higher for longer - and growing political noise around Fed Chair Jerome Powell is only adding to the uncertainty.

Eurozone: Stability holds, but trade tensions rise

The Eurozone remains stable on the surface, with June CPI at 2.0% and Q2 GDP estimated at 0.3%. Domestic demand is holding up thanks to strong employment and a firm euro. However, geopolitical risks are building. The U.S. is set to impose 30% tariffs on EU imports from August 1, and while Europe hasn’t fired back yet, talk of countermeasures is heating up. Despite the tensions, crypto activity remains strong. Euro-denominated trading pairs are growing, and DeFi protocols continue to attract capital from investors chasing yield.

China: Growth slows as stimulus kicks in

China’s Q2 GDP came in at 4.7%, missing expectations and slowing from Q1. The property sector remains a major drag, with real estate investment down over 11%. Industrial output held up better, rising 6.8% year-on-year. Inflation picked up to 2.7%, driven by rising import costs and government-backed consumer spending. Retail sales rose 4.8% in June after a stimulus program targeting appliance trade-ins. While crypto remains banned in China, markets are still watching closely for shifts in economic policy and trade tensions with the U.S.

Japan: Economic pulse slows, policy unchanged

Japan’s economy remains stable but sluggish, with GDP growth forecast at just 0.6% for 2025 and core inflation steady near 2.0%. Low unemployment and steady consumption have made Japan a rare anchor of policy consistency in Asia. Crypto activity is quieter than in other major markets, but clear regulation continues to support ETFs and stablecoin frameworks - a foundation for long-term confidence in the ecosystem.

Closing thoughts: It’s not just about price, it’s about progress

The macro backdrop remains mixed, with shifting ETF flows and persistent inflation adding to uncertainty. Ethereum is attracting renewed institutional interest, while altcoins like Solana and XRP are gaining traction through real-world use and stronger fundamentals.

Volatility is still in play, but so is long-term conviction. With regulated investment products expanding and ecosystem development accelerating, the focus stays on progress, not just price. BTC Markets will be watching ETF flows, macro trends, and sentiment closely as the second half of the year unfolds.

Scam alert

Romance scams: Stay smart and protect your wallet

Scammers are using dating apps, social media, and gaming platforms to build fake relationships and gain trust - all to access your money.

They may shower you with attention, move conversations to private apps, and convince you to send money, invest in fake crypto schemes, or transfer funds on their behalf. It’s often part of a well-rehearsed playbook.

Warning signs it could be a scam:

• The relationship moves quickly and feels too good to be true
• They avoid video chats and always have an excuse not to meet
• They ask you to send crypto, open accounts, or handle money
• They push for secrecy and discourage you from telling others
• Their online profile lacks detail or doesn’t match their story

How to protect yourself:

• Don’t send money or crypto to anyone you haven’t met in person
• Be cautious of investment ‘opportunities’ from online contacts
• Do a reverse image search on profile photos
• Speak to someone you trust if something feels off

If you’ve been affected, contact your bank immediately and report the scam to scamwatch.gov.au.

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