Bitcoin News Today: Bitcoin Dominance Drops to 60.83% as Altcoins Hold $1.44 Trillion Cap Amid Heavy Institutional Selling

The cryptocurrency market is exhibiting divergent trends as Bitcoin faces intensified selling pressure while altcoins demonstrate relative stability. Bitcoin’s dominance has dipped to 60.83% as of July 25, down from 62.1% earlier in the week, according to CoinGlass data [1]. This shift suggests capital is rotating toward alternative cryptocurrencies rather than exiting the market entirely. The total altcoin market cap remains above $1.44 trillion, a marginal decline from its peak of $1.46 trillion, while Bitcoin’s price dropped below $116,000 during the same period [1].

The resilience of altcoins is underscored by their on-chain metrics. Ethereum maintains a 11.66% market share, while Solana and other smaller-cap coins have seen increased activity. Ethereum’s active addresses rose 8.37% in seven days, and Solana’s 30-day wallet growth reached 15.53% despite a 9.59% daily dip [1]. DeFi total value locked (TVL) further highlights this trend: Ethereum’s DeFi TVL stands at $80.99 billion, compared to Solana’s $9.73 billion and Bitcoin’s relatively weak $6.72 billion [1]. These figures indicate that while Bitcoin is under pressure, altcoin networks continue to attract usage and investment.

The sell-off in Bitcoin is being driven by institutional activity. Exchange inflows for Bitcoin surged to over 90,000 BTC during mid-July, with daily inflows remaining elevated at around 30,000 BTC as of July 24 [1]. Analysts attribute this to whales and institutions locking in profits, particularly after Galaxy Digital reportedly sold 10,000 BTC ($1.18 billion), triggering $731 million in liquidations [4]. Bitcoin’s price has fallen from $120,000 to $115,000 during this period, correlating with the increase in exchange inflows. However, altcoin on-chain activity does not reflect similar panic, suggesting the selling pressure is concentrated in Bitcoin rather than the broader market [1].

Market structure analysis reinforces this divergence. The broader crypto market cap (Total) remains near $3.82 trillion, holding above the $3.75 trillion support level, which analysts view as a critical threshold for maintaining a shallow correction [1]. Meanwhile, the Total2 index—excluding Bitcoin—has stabilized at $1.44 trillion, avoiding a deeper decline. This dynamic implies traders are selectively shifting capital away from Bitcoin into altcoins, rather than abandoning the asset class. RSI metrics also highlight the contrast: Bitcoin’s RSI is below 40, signaling weakness, while Ethereum, BNB, and TRON remain in the neutral band near 50 [1].

Industry experts emphasize that the current selloff is a correction rather than a bearish reversal. Coinbase’s David Duong noted that excessive leverage on altcoins has made the market vulnerable to volatility but argued the current decline reflects healthy profit-taking [2]. For instance, XRP, DOGE, and SOL have dipped but remain within long-term uptrends. Bitwise’s Hougan added that institutional investors are now prioritizing risk management over historical patterns, reshaping Bitcoin’s traditional four-year cycle [8]. This shift in institutional behavior could redefine Bitcoin’s price dynamics in the future.

Despite the volatility, some optimism persists. A 400% surge in Bitcoin’s trading volume has sparked speculation about a potential rebound, though this remains unconfirmed [5]. The resilience of altcoins—driven by innovation and regulatory clarity—has also attracted investor interest as the market matures [6]. However, the recent liquidation event exceeding $1 billion underscores the fragility of leveraged positions, particularly in volatile assets [7].

The ongoing divergence between Bitcoin and altcoins highlights evolving market dynamics. A drop in BTC dominance often signals capital reallocation toward smaller-cap cryptocurrencies, where higher returns are perceived in a maturing market [10]. While Bitcoin’s isolated weakness may persist due to ETF redemptions or large holders taking profits, altcoin stability suggests investor sentiment remains broadly positive. Traders and analysts are closely monitoring key thresholds, such as Bitcoin’s 200-day moving average and the Total2 index, to gauge the trajectory of the market correction.

Sources:

[1] [Altcoins Hold Steady As Bitcoin Faces Heavy Sell Pressure] [https://www.thecoinrepublic.com/2025/07/25/altcoins-hold-steady-as-bitcoin-faces-heavy-sell-pressure-heres-why/]

[2] [XRP, DOGE, SOL Lead Crypto Selloff, But Altcoin Season ...] [https://www.coindesk.com/markets/2025/07/25/xrp-doge-sol-lead-crypto-selloff-but-altcoin-season-still-in-play-if-this-happens]

[4] [Bitcoin Crypto News: BTC Dumps $1.18B as Liquidations ...] [https://99bitcoins.com/news/altcoins/live-bitcoin-news-btc-dumps-1-18b-as-liquidations-hit-731m-but-altcoins-like-syrup-and-graphite-soar/]

[5] [Bitcoin (BTC) - Price Turnaround Incoming? Ethereum (ETH)] [https://u.today/bitcoin-btc-400-surge-there-xrp-price-turnaround-incoming-ethereum-eth-dominance-ensured]

[6] [3 Factors That Could Cause a Cryptocurrency Boom in ...] [https://www.theglobeandmail.com/investing/markets/stocks/BTBT/pressreleases/33639381/3-factors-that-could-cause-a-cryptocurrency-boom-in-the-second-half-of-2025/]

[7] [Crypto Liquidations Top $1B as Altcoins Face Sharp ...] [https://www.coinspeaker.com/crypto-liquidations-1b-altcoin-correction/]

[8] [Bitcoin's four-year cycle loses grip as maturing market ...] [https://cryptoslate.com/bitcoins-four-year-cycle-loses-grip-as-maturing-market-reshapes-dynamics/]

[10] [Bitcoin Weekly Forecast: BTC extends correction amid ...] [https://www.mitrade.com/insights/news/live-news/article-5-987326-20250725]