Bitcoin Faces Selling Pressure as Altcoins Hold Steady

Altcoin Resilience Amid Bitcoin Dominance Dip

The cryptocurrency market is witnessing a notable shift as Bitcoin experiences heightened selling pressure, leading to a decrease in market dominance to 60.83%. Altcoins, on the other hand, are demonstrating relative stability, with the total altcoin market cap remaining above $1.44 trillion despite minor fluctuations. Ethereum, Solana, and other smaller-cap coins have shown increased on-chain activity, indicating continued interest and investment in alternative cryptocurrencies [1].

Institutional Activity Driving Bitcoin Sell-Off

The recent sell-off in Bitcoin has been attributed to institutional activity, with exchange inflows surging to over 90,000 BTC in mid-July. Daily inflows have remained elevated at around 30,000 BTC, prompting analysts to suggest that whales and institutions are capitalizing on profits. This trend has led to a drop in Bitcoin's price from $120,000 to $115,000, while altcoin on-chain metrics do not reflect similar panic, indicating that the selling pressure is concentrated in Bitcoin rather than across the entire market [1].

Market Dynamics and Investor Sentiment

Despite the ongoing volatility, industry experts view the current correction as a healthy profit-taking opportunity rather than a bearish reversal. The divergence between Bitcoin and altcoins highlights evolving market dynamics, with traders selectively reallocating capital toward smaller-cap cryptocurrencies. Altcoin stability, driven by innovation and regulatory clarity, continues to attract investor interest, suggesting that sentiment remains positive even amid Bitcoin's weakness. Key thresholds, such as Bitcoin's 200-day moving average and the Total2 index, are closely monitored to gauge the trajectory of the market correction [1].