Bitcoin Nears $118K Amid 2025 Bull Market: Momentum Slows but Institutional Support Remains Strong

Bitcoin’s price movements in late July 2025 have revived debate over whether the crypto bull market is slowing or simply pausing. Trading near $118,000 on July 30, Bitcoin remains close to its all‑time high of around $123,000 but has shown reduced momentum in recent sessions. Meanwhile, Ethereum is holding near $3,800 after a July surge that pushed it up more than 50% during the month, based on CoinMarketCap data. Ethereum’s 50% Surge in July

Institutional Fuel Keeps Summer Bull Market Hot

The Altcoin Season Index—often viewed as the market’s altseason gauge—has dipped to about 36. This suggests Bitcoin is still outperforming most altcoins, limiting the breadth of the rally. Historically, broader gains across mid‑cap tokens have been a key sign of a full bull market, and the current reading suggests traders remain selective. Institutional participation continues to provide support. A March 2025 executive order established a U.S. strategic Bitcoin reserve, reinforcing the asset’s role in national holdings. In parallel, corporate treasuries have allocated more than $86 billion to crypto this year. These moves mean institutional exposure is deeper than in prior cycles. JPMorgan estimates that more than $60 billion in new capital has entered crypto markets so far in 2025, demonstrating the strength of the bull market. Analysts attribute the inflows to ETF adoption, venture capital funding, and renewed confidence after regulatory clarity in several jurisdictions. The institutional presence has helped sustain prices, even as speculative trading cools.

Crypto inflows hit $60 billion in 12 months. JPMorgan's analysis revealed this amount surpasses investments made into private equity during the same timeframe. What does this shift mean for traditional finance?

Source: CoinDesk, July 2025 pic.twitter.com/9bshCvaGFR

— American Bitcoin (@AmericanBTC) July 25, 2025

Ethereum has been a major beneficiary of this trend. With ETF inflows driving demand, ETH rose sharply in July. Business Insider noted that institutional investors were among the largest contributors to its rally, which saw prices climb above $3,800. Daily volumes continue to exceed $15 billion, indicating strong liquidity. Additionally, Bitcoin’s correlation with equities has weakened. An analysis placed the BTC‑S&P 500 correlation near 0.2, suggesting the asset is moving more independently of traditional risk markets. That separation could make Bitcoin more attractive if equity markets remain volatile.

Crypto Bull Market Shows Signs of Strain

Not all indicators are bullish. Rising Bitcoin dominance—still above 60%, according to TradingView’s BTC.D chart—shows capital has not yet rotated broadly into altcoins, delaying the start of a true altseason. This dynamic limits the depth of the rally and raises questions about whether the market has entered the kind of expansionary phase typical of past bull runs. Analysts remain divided. Reports from different organizations project Bitcoin could rise to between $150,000 and $200,000 by the end of 2025, citing liquidity cycles and ETF inflows. Others point to the Federal Reserve’s upcoming September meeting as a possible brake on momentum if interest rate cuts do not materialize. Volatility remains a defining feature. Daily swings of 3% to 5% are common, and traders are balancing long‑term optimism with near‑term caution. Ethereum’s outperformance and steady inflows contrast with Bitcoin’s slower pace, while most altcoins remain muted.

📊 Historically, August has been one of the best months for $ETH during bull markets. pic.twitter.com/9Xaj6De7Zd

— Notaz.eth 💎 (@CryptoNotaz) July 27, 2025

For now, the bull market is not over, but it is showing signs of strain. Prices remain high, institutional backing is strong, and adoption continues to grow. Yet the lack of a broad altcoin rally and uncertainty around monetary policy keep the market in a holding pattern. The next few months will be key in determining whether this cycle resumes its upward push or settles into consolidation.

Source: Bitcoin Nears $118K – Is 2025 Bull Market Losing Momentum? on July 30, 2025

Frequently Asked Questions (FAQ)

Market Trends and Performance

Q: Is the current crypto bull market slowing down or pausing? A: While Bitcoin's momentum has reduced in recent sessions, institutional support remains strong, suggesting the market may be pausing rather than definitively slowing down. Q: What is the Altcoin Season Index, and what does its current reading imply? A: The Altcoin Season Index is a gauge of market breadth. A reading around 36 suggests Bitcoin is still outperforming most altcoins, indicating a selective rally rather than a broad altcoin season. Q: What factors are contributing to the strong institutional support for crypto in 2025? A: Key factors include the U.S. strategic Bitcoin reserve, significant corporate treasury allocations to crypto (over $86 billion), and substantial new capital inflows estimated at over $60 billion, driven by ETF adoption and regulatory clarity. Q: Why has Ethereum seen a significant surge in July? A: Ethereum's rally has been fueled by strong ETF inflows and demand from institutional investors, pushing its price above $3,800 with daily volumes exceeding $15 billion. Q: What is the significance of Bitcoin's weakening correlation with equities? A: A reduced correlation (near 0.2 with the S&P 500) suggests Bitcoin is becoming more independent of traditional risk markets, potentially making it more attractive during periods of equity market volatility. Q: What are some of the concerns or signs of strain in the crypto market? A: Rising Bitcoin dominance, indicating a lack of broad altcoin rotation, and uncertainty surrounding upcoming monetary policy decisions, such as the Federal Reserve's September meeting, are points of caution. Q: What are the differing analyst predictions for Bitcoin's price by the end of 2025? A: Some analysts project Bitcoin could reach between $150,000 and $200,000, citing liquidity cycles and ETF inflows, while others are more cautious due to potential impacts of interest rate policies.

Crypto Market AI's Take

As a sophisticated AI market intelligence platform, we observe that the current market dynamics present a complex picture. The continued strong institutional inflows and the strategic integration of Bitcoin into national reserves highlight a growing maturity and acceptance of digital assets. Ethereum's robust performance, particularly its upward trajectory driven by institutional demand, showcases its increasing utility and potential as a foundational layer for decentralized applications and future financial infrastructure. The narrative of Bitcoin potentially decoupling from traditional equity markets is a significant development, suggesting a potential shift in its role as a hedge or independent asset class. While momentum may appear to be wavering in certain segments, the underlying institutional conviction and ongoing adoption trends suggest a resilient market structure. For investors navigating these waters, staying informed through real-time data and expert analysis is crucial. Our platform's capabilities in providing AI-driven market insights and automated trading strategies are designed to help users make more informed decisions amidst these evolving trends.

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