Crypto Chill: Bitcoin Holds Steady While Altcoins Slide

Bitcoin remained resilient on Wednesday, holding just under $118,500 despite a broader sell-off in the altcoin market. The retreat follows a period of sustained gains, driven by a surge in institutional demand and growing optimism over U.S. crypto legislation.

Ethereum declined 1.2 percent to trade around $3,180, while XRP erased a portion of its recent 30 percent rally, dropping nearly 10 percent. Solana and Dogecoin were also under pressure, falling 6 and 8 percent respectively, as the market digested recent gains.

Market analysts attribute the downturn to post-rally profit-taking. “Investors are locking in mid-July profits, especially in high-beta assets like altcoins,” said Amelia Chung, senior analyst at ChainSignal Research. She noted that Ethereum-linked tokens have faced added pressure from lingering uncertainty over spot ETF approvals and mounting competition among asset managers such as BlackRock and VanEck.

Despite the pullback, Bitcoin’s share of the total crypto market rose to 51.7 percent, its highest level since April. Analysts interpret this shift as a sign of capital rotation back into more established assets. Institutional traders, in particular, appear to favor Bitcoin as a hedge against regulatory volatility, especially under the GENIUS Act and pending negotiations around the CLARITY framework in Washington.

Retail sentiment remains cautious. On-chain activity has slowed, and social media chatter on Reddit and Twitter reflects growing skepticism about the sustainability of recent rallies. Some influencers are calling for a consolidation phase, as the market awaits macroeconomic cues from the Federal Reserve’s next policy statement.

Still, long-term bulls remain unfazed. Bitcoin ETF flows continue to trend higher, and spot trading volumes on platforms like Coinbase and Kraken remain above their 90-day average. The focus now shifts to whether Bitcoin can challenge the $120,000 resistance level in the coming sessions.

Recap:
Bitcoin held steady below $118,500 on July 24, as altcoins like Ethereum, XRP, Solana, and Dogecoin posted sharp losses. The shift in capital toward Bitcoin, and its rising dominance, suggests growing market preference for stability amid ETF uncertainty and regulatory recalibration.