Bitcoin Surges 63% as Institutional Investors Pour $15 Billion

Institutional investors are significantly contributing to Bitcoin's recent surge, while altcoins are being left behind in this market dynamic. The shift is evident as over $15 billion in Bitcoin ETF inflows have been recorded by July 2025, with significant holdings by SPV reserves and pension funds, which now control 63% of the supply. This influx of institutional capital is not only legitimizing the market but also adding substantial liquidity, which is crucial for sustained growth.

According to Will Reeves, CEO of Fold, this phenomenon is more than just a short-term spike; it represents a deeper structural change. Institutional investors are increasingly allocating funds to cryptocurrencies, which is adding legitimacy and liquidity to the market. This trend is expected to continue, with market watchers predicting that the breakout could trigger a wave of institutional inflows and renewed attention from sidelined retail investors.

Bitcoin’s climb to new highs is the result of a “supply shock” triggered by growing demand from large-scale investors. The launch of spot ETFs and the increasing number of companies holding BTC in their treasuries have opened the floodgates for mainstream capital. As new financial vehicles bring trillions of dollars closer to Bitcoin, it’s only natural for the price to move upward.

However, Bitcoin’s growing market share is becoming a one-way street, leaving little room for most altcoins to catch up. With BTC’s market dominance approaching 65%, the asset is cementing its role as the core pillar of the crypto ecosystem. In contrast, alternative tokens remain highly speculative and lack the credibility or utility to compete with Bitcoin over the long run. While many are still trying to prove themselves, Bitcoin stands apart as a globally neutral, battle-tested asset that institutions can trust.

Despite Bitcoin's dominance, altcoins are experiencing significant price surges, suggesting ample room for further upside. After Bitcoin hit a new all-time high, a capital rotation fueled a rally in altcoins such as SEI, ARB, and OP, which showed strong momentum. However, the overall market sentiment indicates that altcoins are reacting quickly to Bitcoin's movements, but they are not leading the charge. The top 5 altcoins that have shown explosive growth include MemeCore, Stellar, Story Protocol, Pudgy Penguins, and the Polygon Ecosystem.

The historic rise of Bitcoin comes amidst macro headwinds, including increasing tensions due to looming tariffs. However, options traders believe that Bitcoin could reach $120,000, indicating a bullish outlook despite the challenges. The dominance of Bitcoin remains above 64%, and analysts suggest that altseason has started, driven by fresh capital and strong market momentum. This dynamic highlights the growing influence of institutional investors in the crypto market, who are fueling Bitcoin's rise while altcoins are left to react to the market's leading cryptocurrency.