Main Takeaways:
- Altcoin market cools: After a rapid surge, altcoins faced a temporary pullback as the Altseason Index reached extreme levels, prompting profit‑taking.
- Bitcoin holding steady: BTC dipped slightly to $118,972 (–0.23%), but analysts view this as a typical bull‑market pause.
- SEC halts Bitwise ETF: The SEC granted then immediately stayed accelerated approval for Bitwise’s 10 Crypto Index Fund conversion into an ETF, under review until at least July 31, highlighting regulatory uncertainty.
- Institutional flows favor ETH: Ethereum’s spot trading volume hit $25.7 billion last week—surpassing Bitcoin’s $24.4 billion for the first time since June 2024—indicating a shift in institutional sentiment.
- Outlook: Market watchers anticipate a consolidation phase before altcoins resume their upward trajectory, while the SEC’s final call on multi‑asset ETFs will shape broader crypto adoption.
1. Altcoin Market Pauses for Breath
The Altseason Index, a gauge of how altcoins perform relative to Bitcoin, soared to extreme levels over the past month, peaking around 72 before retreating to the high‑50s. This sharp rise spurred profit‑taking among traders, causing many mid‑cap and small‑cap tokens to underperform over the past 48 hours.
Altseason Index over the Last Eight Weeks
Analysts emphasize that such corrections are healthy in a bull market, providing consolidation before the next leg up.
2. Bitcoin: Minor Pullback Within Bull Trend
Bitcoin traded at $118,972 on July 24, down 0.23% from the previous day. Despite this slight decline, on‑chain metrics—like rising exchange reserves and sustained open interest in futures—point to continued bullish pressure. Most strategists view the pullback as a normal consolidation phase before potentially challenging the $120,000 level.
3. SEC’s Unprecedented ETF Pause
On July 22, the SEC’s Division of Trading and Markets granted “accelerated approval” for Bitwise’s proposal to convert its $1.68 billion 10 Crypto Index Fund into a spot ETF. Within hours, Assistant Secretary Sherry R. Haywood issued an indefinite stay pending full‑Commission review, drawing parallels to Grayscale’s July 1 pause.
Industry experts speculate that concerns over including assets like XRP and the absence of a unified ETF framework prompted the reversal. Bitwise’s final deadline to push through its conversion is July 31, making this week critical for the multi‑asset ETF landscape.
4. Institutional Rotating to Ethereum
According to CryptoQuant, Ethereum recorded $25.7 billion in spot volume last week, eclipsing Bitcoin’s $24.4 billion—a milestone not seen since June 2024.
Insert Figure 2: Weekly Spot Trading Volume—ETH vs BTC
This volume shift suggests that institutions are increasingly allocating to ETH, driven by anticipation of upcoming network upgrades, DeFi growth, and the launch of spot ETH ETFs.
5. Arthur Hayes’ Bullish Outlook
BitMEX co‑founder Arthur Hayes, in his “Time Signature” blog, reaffirmed a long‑term bullish stance on BTC and ETH. He highlighted renewed institutional interest in ETH—evidenced by record inflows into US Ethereum ETFs—and revealed that his firm, Maelstrom, is heavily investing across the Ethereum ecosystem, including major DeFi protocols.
6. What Comes Next?
With altcoins taking a cooling period and Ethereum gaining institutional traction, the near‑term market may trade sideways. The critical date—July 31, when the SEC’s stay technically expires—could trigger renewed volatility if approvals or denials of multi‑asset ETFs emerge. Meanwhile, technical charts show BTC finding support near $118,000 and ETH holding above $2,700, underscoring resilience.
Conclusion:
While the altcoin market’s brief consolidation may feel like a halt to momentum, it’s a natural phase in an extended bull run. Bitcoin’s minor pullback and Ethereum’s volume surge illustrate a maturing market where institutional flows increasingly drive asset rotation. The SEC’s handling of Bitwise’s ETF application will be pivotal: a green light could catalyze broad adoption, whereas further delays might prolong regulatory uncertainty. For now, traders and investors should watch key support levels—$118,000 for BTC and $2,700 for ETH—and prepare for the SEC’s decision at the end of July.
