ETH Surpasses BTC in July Rally as ETF Inflows and Bitcoin Dominance Alter Crypto market Dynamics
After closely following Bitcoin for the majority of the year, BTC Dominance is experiencing a decline, and 
Ethereum ▲3.99% has exceeded expectations with a 44% surge from its July low of $2,373 to surpass $3,526.
Furthermore, news emerged this week that Peter Thiel, a co-founder of Palantir and PayPal, acquired 9% of an ETH Treasury company. The change in momentum arises as institutional interest intensifies and ETH ETFs gain traction, putting pressure on Bitcoin’s market dominance.
But does this indicate that the Bitcoin pump has come to an end? Here’s what you need to know:
ETH/BTC Breakout Signals a Structural Trend Change
After more than a year of declines, the ETH/BTC ratio is finally beginning to show signs of revival. It has recently breached resistance at 0.02629 Bitcoin and is now approaching 0.02968, a level that, if surpassed, could create a full-fledged upward trend in Ethereum’s value relative to Bitcoin.
“If ETH/BTC can sustain its bullish momentum, then there’s a 99% likelihood that BTC Dominance has peaked.” – Matthew Hyland, crypto analyst, via X
Following a severe downturn that began in 2023 and intensified through mid-2024, ETH/BTC is demonstrating early signs of recovery. The rebound from the 0.015–0.020 range suggests a potential long-term trend reversal.
However, BTC is not out of the picture yet. According to 99Bitcoins analysts, Bitcoin dominance (BTC.D) has yet to breach its uptrend formation. A complete ETH/BTC uptrend may take weeks or months to materialize, allowing space for BTC to ascend.
BTC Dominance Declines, Paving the Way for Altcoin Season
Part of Ethereum’s growth can be attributed to renewed interest from institutions. In July alone, Ethereum ETFs recorded net inflows of over 79,674 Ethereum — approximately $256 million — with iShares’ fund accumulating nearly 56,000 ETH ($180M+).
In contrast, Bitcoin ETFs saw higher dollar inflows — around $404 million — yet Ethereum’s growth rate in ETFs concerning its crypto market cap is noteworthy.
Trump again bought $3,000,000 $ETH.
ETH is taking the lead.
— Ted (@TedPillows) July 18, 2025
Bitcoin dominance has decreased by over 5.4%, falling below a crucial ascending trendline and currently resting at 62.47%.
If the reversal holds, the next phase of the cycle could lean towards altcoins with ETH taking the lead.
What’s Next for ETH?
A decisive break above the 0.038 BTC price ceiling would solidify Ethereum’s reversal story — and pull institutional attention squarely towards Ethereum.
In the interim, Ethereum continues to thrive from favorable ETF inflows, base level from the Trump family, growing crypto holder optimism, and a declining BTC dominance. ETH is about to heat up.
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Key Takeaways
- The countdown is on for one of crypto’s longest legal battles, and the XRP price might be primed for a launch.
- All attention is focused on Powell this week, as inflation persists and labor metrics weaken.
The post Ethereum Outpaces BTC in July Surge as ETF Inflows, BTC Dominance Shift Market Dynamics appeared first on 99Bitcoins.
