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Ether’s Price Surge Is Not Linked to Bitcoin Capital Outflows
In July, Ethereum experienced a sharp rise from $2,398 to $3,850 — a 60.55% increase. This upward move sparked intense debate within the crypto community. Many claimed that the growth was due to large-scale Bitcoin (BTC) sell-offs and a shift of capital into Ether (ETH). However, recent data contradicts this assumption.
According to CryptoQuant analyst Carmelo Alemán, the best way to test such claims is by examining the Realized Cap metric for Bitcoin. This indicator reflects the actual capital invested in BTC, based on the last on-chain movement price of each coin. It’s independent of current market price and provides a more accurate picture of capital dynamics.
As of July 25, Bitcoin’s Realized Capitalization reached a new all-time high of $1.018 trillion. This confirms that there has been no major BTC sell-off to fund ETH purchases. On the contrary, investors continue to accumulate Bitcoin despite temporary price stagnation.
Such behavior is consistent with previous market cycles. During accumulation phases, Bitcoin’s price often stabilizes before further upward moves. This indicates BTC remains strong as the market evolves. Ether’s price rally is driven by different factors.
Amid positive expectations for the Ethereum ecosystem and the implementation of the so-called “Genesis Law,” July saw a significant influx of new capital into ETH markets. This does not suggest a reduction in BTC positions but rather reflects an overall expansion in total market capitalization.
The analyst’s conclusion is clear: the current ETH price surge is not caused by a Bitcoin capital outflow. In fact, both assets are benefiting from fresh investment inflows. This supports a bullish sentiment across the market and demonstrates that there is no direct competition between the industry’s leading cryptocurrencies.
See also: "New U.S. Bill Proposes Including Crypto Assets in Mortgage Applications"
