Bitcoin News Today: Bitcoin drops 2.6% as capital shifts to Ethereum, which surges 50% this month

Bitcoin’s recent decline to the $115,000 range marks a temporary consolidation phase in its broader bullish trend, driven by profit-taking and shifting capital flows toward Ethereum and altcoins. The cryptocurrency experienced a 2.6% drop within 24 hours, with institutional investors contributing to a $285 million outflow from Bitcoin ETFs over three days, ending a 12-day inflow streak that had fueled its rally. This correction has triggered liquidations of $586 million in long positions, highlighting the volatility of leveraged trading [1].

The pullback coincides with a notable capital rotation into Ethereum and select altcoins, as investors diversify their crypto portfolios. Ethereum has surged 50% this month, supported by record ETF inflows, while trading volumes and social media sentiment indicate heightened interest in alternative tokens. This shift reflects maturing market dynamics, as investors seek opportunities beyond Bitcoin’s dominance. Analysts note that the reallocation underscores a broader trend of portfolio diversification rather than a bearish reversal [1].

External macroeconomic factors are also influencing market sentiment. Uncertainty around U.S. trade policy decisions and ongoing negotiations with partners such as the EU and Canada have dampened risk appetite. Additionally, anticipation of the Federal Reserve’s upcoming meeting has prompted traders to reduce exposure, contributing to a defensive stance across traditional and crypto markets [1].

Despite the near-term volatility, experts view the correction as a healthy consolidation rather than a breakdown. COINOTAG analysts suggest the dip allows the market to absorb recent gains, positioning Bitcoin for a potential resumption of its upward trajectory once macroeconomic clarity emerges [1]. Technical indicators further support this outlook, with key support levels around $119,000 holding firm and suggesting a possible breakout from a bull flag pattern [1].

For investors and traders, the current environment emphasizes strategic portfolio management. The rotation into Ethereum and altcoins presents diversification opportunities, while Bitcoin’s consolidation offers potential entry points for long-term holders. However, monitoring macroeconomic developments and technical signals remains critical to navigating volatility and managing downside risks [1].

The crypto market’s ability to withstand corrections while attracting fresh capital into alternative assets highlights its evolving maturity. As Bitcoin stabilizes and Ethereum gains momentum, the interplay between macro factors and asset-specific dynamics will shape the near-term trajectory. Investors are advised to remain cautious but optimistic, aligning strategies with both fundamental and technical signals to capitalize on emerging opportunities.

Source: [1] [Bitcoin Pullback Near $115K May Reflect Temporary Cooldown Amid Capital Rotation to Ethereum and Altcoins July 25, 2025] [https://en.coinotag.com/bitcoin-pullback-near-115k-may-reflect-temporary-cooldown-amid-capital-rotation-to-ethereum-and-altcoins/]