Bitcoin holds near $118,000 as crypto ETFs drive institutional flows

​​​Bitcoin consolidates after hitting fresh peaks above $122,000

​Bitcoin continues to trade near the psychologically important $118,000.00 level, having pulled back modestly from recent highs around $122,400.00. The consolidation suggests the market is digesting the remarkable gains of recent months while building a platform for the next potential move higher.

​The relative stability in Bitcoin during the mid-July altcoin correction demonstrates the leading cryptocurrency's growing maturity. While smaller digital assets faced significant selling pressure, Bitcoin's price action remained comparatively measured, highlighting its position as the sector's safe haven.

​This resilience becomes even more impressive when considering the market absorbed a substantial $9 billion Bitcoin sale from Galaxy Digital with minimal disruption. Such absorption capacity indicates robust underlying demand and suggests institutional appetite remains strong despite elevated price levels.

​Institutional flows surge as crypto ETFs attract record inflows

​The crypto exchange-traded fund (ETF) space delivered spectacular results during "Crypto Week", attracting a staggering $4.4 billion in institutional inflows. Ethereum led the charge with approximately $2.4 billion, underlining growing institutional confidence in the second-largest cryptocurrency.

​These flows were further bolstered by the SEC's approval of in-kind creation and redemption mechanisms for crypto ETFs. This development significantly enhances liquidity and operational efficiency, making these products more attractive to institutional investors seeking exposure to digital assets.

​The regulatory progress extends beyond ETF mechanics, with the GENIUS Act now signed into law. This legislation mandates full collateralisation and federal oversight of stablecoins, providing the regulatory clarity that institutional investors have long sought.

​Altcoin correction creates opportunities amid token unlock pressure

​The altcoin space experienced a sharp correction in mid-July, with liquidations reaching approximately $967 million. This selling pressure was exacerbated by major token unlocks, including 304.7 million PI tokens, $630 million worth of Trump Token, and 80 million SESH tokens.

​These unlock events typically create temporary oversupply conditions, pressuring prices lower as early investors and project teams potentially monetise their holdings. However, such corrections often create attractive entry points for longer-term investors willing to navigate the volatility.

​Ethereum has shown particular resilience, holding above the crucial $3,800.00 support level despite the broader altcoin weakness. This strength is underpinned by robust institutional demand and growing confidence in its long-term utility within the decentralised finance ecosystem.

​Outlook remains constructive despite near-term headwinds

​Looking ahead, analyst predictions for Ethereum reaching $7,000.00 by fourth quarter (Q4) 2025 reflect growing optimism about the sector's trajectory. This bullish outlook is underpinned by continued ETF adoption and rising institutional demand across the cryptocurrency spectrum.

​The tokenisation of real-world assets represents another significant growth driver, with blockchain technology increasingly being adopted for traditional financial instruments. This trend could dramatically expand the total addressable market for cryptocurrencies beyond their current scope.

​Corporate activity also suggests growing confidence in the space, with DDC adding 181,300 SOL tokens to bring its total holdings to approximately 1.18 million SOL. The company's plans to acquire more through credit lines indicates institutional appetite extends beyond Bitcoin and Ethereum.