Ethereum News Today: Bitcoin Dominance Drops 3.35% as Ethereum Surges 5.56% on ETF Inflows

Bitcoin's recent rally has had a ripple effect on the broader crypto market, with its dominance index decreasing significantly in favor of altcoins. On Friday, July 18, Bitcoin's dominance index fell by 3.35% to a three-month low of 60.8%. This decline was accompanied by a moderate loss of 0.59% in Bitcoin's value, which dropped below $118,000. Meanwhile, altcoins experienced a surge in value.

Ethereum (ETH) emerged as a standout performer, with its value increasing by 5.56%. This surge was driven by significant ETF inflows, with Ethereum's dominance index rising by 1.87%. The price of ETH briefly surpassed $3,600 for the first time since January. Notably, Ethereum attracted substantial ETF inflows, totaling $727 million on July 16 alone, with BlackRock’s ETHA accounting for approximately $499 million of that amount. Monthly inflows for Ethereum rose by 36%, outpacing Bitcoin ETFs, which saw their inflows grow by only 10%.

The regulatory environment has also played a significant role in boosting Ethereum and other altcoins. The passage of three crypto-related bills is expected to reshape the industry. Notably, the Clarity Act delineates the jurisdiction between the SEC and the CFTC, which is particularly important for altcoins, including Ethereum. Previously, virtually all altcoins were considered securities, subject to stringent securities laws. The new legislation opens opportunities for more institutional investment and participation in Ethereum, given its position as the largest and oldest blockchain enabling smart contracts. This regulatory clarity is likely to attract even conservative investors to explore opportunities beyond Bitcoin in the crypto arena.

Most other altcoins also registered strong gains as traders converted their Bitcoin profits into tokens with more potential upside. The market's appetite for risk is likely driven by the passage of these crypto-related bills, which provide a more favorable regulatory environment for altcoins. This shift in market dynamics suggests that the altcoin season may finally be underway, with Ethereum leading the charge.