Bitget Insights: Ethereum Rally Fuels Altcoin Season Speculation as ETF Inflows and Layer-2 Growth Surge

Ethereum's impressive surge past $4,600—a 2025 high—has reignited bullish sentiment across the cryptocurrency market, with traders eagerly anticipating a retest of its all-time peak at $4,878. This rally is accompanied by significant institutional inflows into ETH ETFs and record-breaking adoption of Layer-2 solutions, suggesting a potential rotation of capital from Bitcoin, whose dominance has recently dipped below 58%. According to Bitget Wallet’s Jamie Elkaleh, Ethereum’s breakout is a clear signal of early-stage altcoin momentum, further evidenced by $238 billion in activity recorded in July. As the market watches these developments unfold, the stage may be set for a broader altcoin season, with Ethereum leading the charge.

Ethereum Rally Sparks Speculation of Altcoin Season Amid ETF Inflows and Layer-2 Growth

Ethereum's surge past $4,600—a 2025 high—has reignited bullish sentiment, with traders eyeing a retest of its all-time peak at $4,878. Institutional inflows into ETH ETFs and record Layer-2 adoption suggest capital may be rotating from Bitcoin, whose dominance dipped below 58%.

"Ethereum’s breakout signals early-stage altcoin momentum," said Bitget Wallet’s Jamie Elkaleh, citing $238 billion in July transaction volume. Yet analysts caution that sustained altcoin outperformance against BTC and ETF-driven liquidity are prerequisites for a definitive market shift.

Yen Strengthens Against Bitcoin and Dollar Amid BOJ Rate Hike Speculation

The yen surged against both the dollar and Bitcoin following remarks by U.S. Treasury Secretary Scott Bessent, who argued the Bank of Japan is lagging in addressing inflation. "The Japanese have an inflation problem. They're behind the curve and will likely hike rates," Bessent told Bloomberg TV, contradicting BOJ Governor Kazuo Ueda's cautious stance on tightening.

BitFlyer's BTC/JPY pair dropped 1.7% to 17,845,432 yen as the yen gained broadly. The divergence highlights mounting pressure on Japan to normalize monetary policy after months of U.S. calls for action to curb yen weakness and trade imbalances.