Ethereum News Today: Bitcoin Dominance Surges 62.3% as Ethereum ETF Inflows Fuel Undervaluation Debate

Bitcoin’s market dominance, a key indicator for altcoin season, has surged back above 62% after a brief dip below 60% in late July, casting uncertainty over whether a broader rally in alternative cryptocurrencies is imminent [1]. The recovery follows a period of optimism when Bitcoin’s share of the total crypto market cap fell, historically signaling increased altcoin activity. However, the rebound aligns with patterns observed during previous bull cycles, where Bitcoin’s resilience often curtailed momentum in altcoins [2].

Ethereum (ETH) has yet to surpass its all-time high of $4,800, peaking at $3,860 in recent trading. Analysts had anticipated a retest of its historic high as confirmation of altcoin season, but the recent price correction and subdued retail participation have raised caution. While institutional demand for ETH remains strong—driven by sustained inflows into Ethereum ETFs, including $1.16 billion injected by BlackRock in three days—Bitcoin ETF flows turned negative in early August, indicating profit-taking by large investors [1]. This divergence highlights contrasting institutional strategies, with Ethereum still viewed as potentially undervalued despite its recent gains.

Whale activity has been a driving force in the market, with large investor holdings reaching levels last seen during the 2021 bull run. A CryptoQuant analysis noted that whale-driven inflows, rather than retail demand, fueled recent market gains [1]. CoinGlass data further revealed $18.29 million in net ETH demand across major exchanges in three days, though Binance recorded outflows. Meanwhile, over $6 billion in ETH long positions on OKX and Binance suggest whale optimism, despite the risk of heavy liquidations. Open interest near $57 billion remains elevated, and $157 million in ETH longs were liquidated in 24 hours, underscoring short-term volatility [1].

The interplay between Bitcoin’s dominance, ETF flows, and whale positioning has created a tug-of-war between bullish and bearish forces. DeepSeek AI recently highlighted Bitcoin’s 62.3% dominance as a potential headwind for altcoins [2], while others argue Ethereum’s ETF inflows signal undervaluation. Analysts are closely watching August, a historically volatile period, for clues on whether altcoin season will gain traction. The market’s direction may hinge on whether institutional and whale demand for altcoins remains robust, balancing Bitcoin’s renewed strength with Ethereum’s potential to break higher [1].

Sources:

[1] [Is Altcoin Season Cancelled As Bitcoin Dominance Snaps Back Up?](https://www.thecoinrepublic.com/2025/07/25/is-altcoin-season-cancelled-as-bitcoin-dominance-snaps-back-up/)

[2] [DeepSeek AI Predicts the Best Crypto to Buy This Altcoin Season](https://coincentral.com/deepseek-ai-predicts-the-best-crypto-to-buy-this-altcoin-season-xrp-snorter-cardano/)