The cryptocurrency market saw a significant resurgence this week, marked by strong gains across major digital assets, increasing institutional interest, and important regulatory developments.
Here’s a breakdown of the most important events and movements in the crypto space as of mid-July 2025.
Market Overview
The total cryptocurrency market capitalization increased by approximately 10% over the past week, rising from around $3.4 trillion to $3.74 trillion. This growth reflects renewed confidence across the industry, particularly in the altcoin sector.
Bitcoin (BTC) rose by 8.5%, hitting a new all-time high near $118,000. However, despite this rise, Bitcoin’s market dominance dropped from 63.7% to 57.8% as capital began shifting toward altcoins, suggesting that a broader market rally may be underway.
Notable Token Performances
Several major altcoins outperformed Bitcoin this week:
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XRP gained 27%, trading at approximately $2.84 and briefly overtaking Tether in total market capitalization. The surge was driven by ongoing investor optimism around Ripple’s regulatory standing and global banking partnerships.
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Stellar (XLM) recorded a 6% weekly increase, boosted by news that PayPal is preparing to launch a new stablecoin on the Stellar blockchain. This partnership highlights Stellar’s growing relevance in real-world financial applications.
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Ethereum (ETH) climbed by 6.6%, nearing the $3,000 mark again. Institutional accumulation through pending spot Ethereum ETFs is helping sustain bullish momentum.
Other altcoins like Solana (SOL) and Dogecoin (DOGE) also posted modest gains, up 3.6% and 8% respectively, reflecting a more diversified investor focus beyond the top two cryptocurrencies.
Regulatory and Legislative Developments
This week has been especially important on the policy front. In the United States, lawmakers are in the midst of “Crypto Week,” a crucial legislative period where multiple digital asset bills are being debated in Congress. Among the proposed legislation are:
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The GENIUS Act, which seeks to provide a clear legal framework for stablecoins.
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The CLARITY Act, which addresses regulatory oversight of digital asset markets.
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Proposed laws to ban or restrict the issuance of central bank digital currencies (CBDCs) in the U.S.
Ripple CEO Brad Garlinghouse is expected to testify before a Senate committee in support of crypto-friendly regulation. These hearings and legislative proposals are seen as pivotal for shaping the U.S. regulatory landscape going forward.
Institutional Activity and ETF Inflows
Crypto ETFs continue to attract strong inflows, especially as investors anticipate the official launch of spot Ethereum ETFs later this year. Bitcoin ETFs have already contributed significantly to BTC’s price rise, and Ethereum is expected to benefit from similar investor behavior.
With regulatory approval in place and trading launches imminent, institutions are positioning themselves ahead of potential inflow surges. This week’s market strength reflects growing conviction in digital assets as a legitimate part of diversified portfolios.
Technical Indicators and Market Sentiment
Technical analysts point to a cup-and-handle formation in Bitcoin’s price chart, combined with a rising MACD (Moving Average Convergence Divergence), as signals of continued bullish momentum. If these patterns hold, projections suggest Bitcoin could test resistance levels around $134,000 in the near term.
Additionally, over $1 billion in short positions were liquidated across major exchanges this week. This liquidation pressure has added fuel to the ongoing rally, with market sentiment firmly tilted in favor of bulls.
Broader Market Trends
One emerging trend is the strong performance of meme coins and lower-cap altcoins. According to data from CoinDesk, since April, meme tokens have risen by an average of 49%, compared to a 31% gain for Bitcoin and a 29% gain for large-cap altcoins. This suggests a more selective rally, where retail investors are exploring higher-risk, higher-reward opportunities.
Key Areas to Watch
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Final S-1 Approvals for Ethereum ETFs
The U.S. SEC has already approved the 19b-4 filings for several ETH ETFs, but full trading can only begin once the registration statements (S-1s) are approved. This milestone is expected to bring significant institutional capital into Ethereum. -
Regulatory Outcomes from Crypto Week
The legislation debated in the U.S. could set the tone for crypto regulation globally. A favorable outcome may attract more institutional players, while restrictive laws could trigger temporary pullbacks. -
Altcoin Rotation and Market Breadth
As Bitcoin dominance declines, capital rotation toward altcoins is gaining traction. Continued momentum in this area could spark the beginning of a broader “altseason.” -
Macroeconomic Factors
Investors are also watching for signs from the Federal Reserve regarding potential interest rate cuts in September. A dovish stance could boost risk-on assets, including crypto.
This week has been one of the most dynamic periods for the crypto market in recent months. Strong gains across key digital assets, increasing inflows into ETFs, and critical legislative discussions in Washington have fueled optimism and investor engagement.
Bitcoin’s climb to a new all-time high is noteworthy, but the real story may be unfolding in the altcoin space, where tokens like XRP and Stellar are leading a market-wide surge. Meanwhile, regulatory clarity and macroeconomic shifts continue to play an outsized role in shaping the direction of digital assets.
As we move deeper into the second half of 2025, the combination of market momentum and regulatory progress suggests that the cryptocurrency sector may be on the verge of its next major growth cycle.
