empty
30.06.2025 12:15 PM
Bitcoin outshines competitors

Expectations vs. reality Cryptocurrency creators once envisioned a universe where countless tokens could compete for investors' money. In reality, aside from Bitcoin and a handful of digital assets, the rest have turned out to be unnecessary. In 2025 alone, altcoins have lost around $300 billion in market capitalization and have taken a nosedive since then. Even Ethereum, the second-largest token, is struggling to compete with the leader. While BTC/USD has broken several records, Ethereum remains far from its all-time highs.

Bitcoin vs. altcoin performance

This image is no longer relevant

Regulation, government support, and stronger institutional infrastructure have become the main ingredients for the success of digital assets. Although all tokens initially rallied after Donald Trump returned to the White House, by mid-year, it became clear how different they are in essence. The MarketVector index, which tracks the bottom half of the top 100 digital assets, plunged by 50%, while Bitcoin's dominance in the total crypto market cap rose by 9 percentage points, reaching 64%.

The BTC/USD rally has been strongly supported by the development of financial tools more typical of traditional markets. Derivatives and specialized ETFs have become essential to both Bitcoin and Ethereum. Capital inflows into these ETFs are among the key drivers of their price growth.

Capital flows into Bitcoin- and Ethereum-focused ETFs

This image is no longer relevant

Regulation plays a pivotal role in separating the leading digital assets from those heading toward extinction. New stablecoin legislation has fueled a $47 billion rise in their market cap over the past year. Some major players are now taking a closer look at this asset class. Amazon, for example, is exploring its potential. Coinbase, Kraken, and Robinhood are working to tokenize stocks in an effort to build a fast and user-friendly trading system.

As a result, the structure of the crypto asset market is evolving, driven by regulation, the emergence of new products and institutions, and a government stance increasingly favorable to digital assets. Interest in Bitcoin and stablecoins is rising, while many altcoins are at risk of turning to dust. A key part of this transformation is the clear separation of roles: stablecoins serve as payment instruments, while Bitcoin is a tradable asset.

This image is no longer relevant

The close correlation between BTC/USD and US stock indices also provides clues about Bitcoin's future trajectory. Global risk appetite is a critical factor in this dynamic. In that context, record highs in the S&P 500 are laying the groundwork for another potential Bitcoin rally.

Technically, the BTC/USD daily chart may be forming a broadening wedge reversal pattern. For that to play out, bears must defend resistance at 110,700. A breakout would signal a chance to add to long positions. A failed test, on the other hand, could trigger a reversal.

Marek Petkovich,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Igor Kovalyov
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

EUR/USD: ECB's "Hawkish Pause" and Conflicting Macroeconomic Reports

The results of the ECB July meeting provided slight support for the euro. However, contradictory macroeconomic reports and anticipation of the outcome of the US-EU negotiations played a restraining role

Irina Manzenko 00:50 2025-07-25 UTC+2

The Euro Outsmarted the "Bears"

There was no "sell the fact" reaction. One of the reasons behind the recent EUR/USD rally was the expectation that the deposit rate would be held at 2% following

Marek Petkovich 00:50 2025-07-25 UTC+2

Will There Be a Deal Between the EU and the US?

The European Union has ultimately made a move toward Donald Trump. However, calling it a compromise would be inaccurate, as it is Brussels—not Washington—that is largely conceding. Nevertheless, media reports

Chin Zhao 20:23 2025-07-24 UTC+2

EUR/USD – Analysis and Forecast

Today, the pair is retreating from its daily high. According to European Commission officials, the EU and the US are close to reaching an agreement that would include 15% tariffs

Irina Yanina 14:00 2025-07-24 UTC+2

USD/JPY – Analysis and Forecast

Today, the pair broke a three-day losing streak, as Japan's domestic political uncertainty, disappointing manufacturing PMI data, and prevailing risk appetite remain key factors limiting the yen's growth

Irina Yanina 13:55 2025-07-24 UTC+2

XAU/USD – Analysis and Forecast

Currently, gold continues to lose ground. Recent news of progress in trade negotiations between the United States and Japan, as well as reports that the US and the European Union

Irina Yanina 12:23 2025-07-24 UTC+2

USD/CHF – Analysis and Forecast

The uncertainty regarding the Federal Reserve's policy is holding back the growth of the U.S. dollar, while trade-related optimism continues to undermine the Swiss franc's status as a safe-haven asset

Irina Yanina 11:43 2025-07-24 UTC+2

Why Isn't the Euro Falling Against the US Dollar? (There Is a Possibility of Limited Downside in EUR/USD and GBP/USD)

The euro continues to show steady growth against the dollar, which may seem irrational at first glance, but there are significant reasons behind this. Let's examine them. Today, the European

Pati Gani 09:47 2025-07-24 UTC+2

The Market Has Made It Clear

The economy remains strong, and U.S. trade deals with other countries are bringing clarity. What could be better for the S&P 500? Perhaps a fireworks display of corporate earnings that

Marek Petkovich 08:57 2025-07-24 UTC+2

What to Pay Attention to on July 24? A Breakdown of Fundamental Events for Beginners

Several macroeconomic reports are scheduled for release on Thursday, but they will all be similar in nature. Business activity indices for the services and manufacturing sectors for July will

Paolo Greco 07:12 2025-07-24 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.