Bitcoin News Today: Ethereum outperforms Bitcoin as crypto market consolidates post-July correction

The crypto market entered the second week of August amid a period of healthy retracement following a significant correction in the final week of July, aligning with broader stock market dynamics [1]. This correction, while sharp, did not signal a reversal in the bullish trend but rather a natural consolidation within an ongoing bull cycle. The market exhibited signs of resilience, with Ethereum recovering faster than Bitcoin, dipping only 13% and showing reduced price correlation with Bitcoin [1].

Ethereum’s relative strength was further underscored by Bitcoin’s dominance retreating to the 62.5% level for the second time, indicating a shift in investor sentiment and capital allocation towards altcoins and Ethereum in particular [1]. The report highlighted BlackRock’s strategic shift from Bitcoin to Ethereum as a key factor contributing to Ethereum’s outperformance. Meanwhile, Bitcoin appears to be near its local peak, potentially signaling a repositioning phase for the broader altcoin market [1].

Total3, a market cap index tracking the top three cryptocurrencies, tested its previous all-time high in late July but failed to break through the resistance level. This rejection has occurred three times previously—November 2021, December 2024 and January 2025, and July 2025—suggesting that a successful breakout may require a fourth attempt [1]. The index's behavior reflects a broader pattern of market exhaustion and caution among traders.

Liquidation data also pointed to a major and prolonged event in the last week of July, coinciding with a stock market correction. This suggests a high degree of interconnectivity between traditional and crypto markets, reinforcing the idea that crypto corrections are often a reflection of broader macroeconomic shifts [1]. Analysts interpret this as confirmation that the retracement was healthy and not a bearish trap.

The report advised investors to remain patient, noting that the market is likely to need another one to two weeks for further consolidation before a new bullish phase can begin. This cautious outlook is grounded in the need for clearer breakout signals and for sentiment to stabilize across both traditional and crypto markets [1].

Source: [1] Crypto Market Report – August Week 1 (https://coinmarketcap.com/community/articles/689594515d988424540d6f46/)