July 22, 2025 — The crypto market continued its summer rally this week, with Bitcoin (BTC) and Ethereum (ETH) maintaining key support levels as capital rotates into altcoins. Bitcoin hovered around $118,500 while Ethereum climbed to $3,700, both holding steady amid broader market enthusiasm led by gains in Solana, Chainlink, and several DeFi tokens.
This resilience comes despite new regulatory pressure from the United States and rising global inflation data, suggesting that the market is entering a phase of renewed investor confidence.
Bitcoin Stability Signals a New Market Phase
Over the last 48 hours, Bitcoin has traded in a narrow band between $117,800 and $119,200. This price consolidation is widely viewed as constructive, especially after BTC’s sharp surge from $95,000 earlier this month. Market watchers are pointing to decreasing volatility, healthier order books, and fewer liquidations on derivatives exchanges as signs of increasing maturity.
Technical analysts note that Bitcoin is currently resting on the 21-day EMA, with support from both spot buying and ETF inflows. According to data from Glassnode, U.S.-based Bitcoin ETFs added nearly 6,500 BTC in the past week, a sign that institutional buyers are accumulating on dips.
Ethereum Climbs as Layer 2 Ecosystem Expands
Ethereum has quietly outperformed expectations in July. With ETH trading above $3,700, up nearly 9% month-to-date, attention is turning to the booming activity on its Layer 2 networks. Optimism, Arbitrum, and Base have all seen spikes in transactions, NFT launches, and new DeFi deployments.
Several analysts attribute Ethereum’s strength to renewed demand for staking, rising L2 token prices, and the increasing use of ETH as collateral in stablecoin-backed protocols. The ETH-to-BTC ratio also moved higher this week, approaching 0.032, a potential signal of shifting capital back into altcoin-heavy portfolios.
Adding fuel to the rally, Ethereum developers confirmed a tentative September rollout for the “Pectra” upgrade, expected to further reduce gas fees and improve state compression — a technical milestone that’s likely to enhance scaling.
Altcoins Lead the Charge: Solana, Chainlink, and AI Tokens Surge
While Bitcoin and Ethereum are holding the fort, it’s the altcoin space that’s driving trader excitement. Solana (SOL) briefly touched $200 for the first time since May, defying broader market hesitation with strong volume and social sentiment. Chainlink (LINK) rallied above $22 following a flurry of Oracle integrations with new DeFi platforms.
Meanwhile, AI-related tokens continue to ride the narrative wave. Projects like Fetch.ai (FET), Ocean Protocol (OCEAN), and the recently launched Synapse AI (SYN-AI) all posted double-digit gains. Investor interest appears to be building around AI + crypto intersections, particularly those focused on data ownership and compute markets.
DeFi Sees Uptick in TVL as Yields Return
Total value locked (TVL) in DeFi protocols is on the rise again, breaking past $92 billion according to DeFiLlama — its highest mark in 16 months. Much of that growth is being driven by liquid staking, real-world asset (RWA) protocols, and new tokenized treasury products.
Protocols like Ondo Finance and Maple have seen increased demand as yield-hungry investors rotate out of meme coins into more stable, yield-bearing products. Stablecoin utilisation is also up, a likely side effect of tighter U.S. regulation on stablecoin issuers, forcing consolidation into trusted names like USDC and ETHx.
Macro Factors: Why This Rally Might Stick
The global macro environment is shifting, but crypto is reacting with unusual resilience. While inflation in the U.S. and Europe ticked up slightly in June, market expectations for rate hikes remain low. The Federal Reserve’s next policy meeting in August is expected to hold rates steady, allowing risk-on assets like crypto to continue climbing.
At the same time, global crypto adoption shows no signs of slowing. Tokenization pilots are expanding in the Middle East, Asia is leading on crypto gaming innovation, and Latin American governments continue to explore stablecoin use cases for cross-border payments.
Even with regulatory uncertainty in major Western markets, these global tailwinds may help offset localised headwinds.
Final Takeaway: Altseason Is Quietly Brewing
While Bitcoin holds ground and Ethereum trends upward, the real story is unfolding in the altcoin market. Developers are shipping, use cases are expanding, and narratives — from AI to DeFi to RWA — are gaining traction.
Investors appear to be rewarding projects that combine strong fundamentals with compelling narratives, and the market is reacting accordingly. Whether this momentum can continue depends on macro stability, regulatory clarity, and — as always — whether the inflows keep coming.
But for now, July 2025 is shaping up to be one of the strongest months for crypto since the last cycle peak.
