- ETH ripped 60% in July but didn’t steal from BTC—on-chain data shows fresh capital, not rotation, powered the Ethereum rally.
- BTC Realized Cap smashed a record of \$1.018T—no major dumps here, just steady accumulation as ETH rides its own investment wave.
- CryptoQuant confirms ETH’s surge isn’t BTC’s loss—new funds are backing both assets, killing the Bitcoin-to-Ethereum rotation rumor.
Ethereum has had a strong price action in July, rising from $2,398 to $3,850—a 60.55% gain. This has sparked controversy on whether the rally is due to capital exiting Bitcoin.
No Major Bitcoin to Ethereum Capital Shift Observed
CryptoQuant’s recent analysis challenges the circulating narrative that Bitcoin holders are rotating capital into Ethereum. A tweet from Cryptoquant_com quoted on-chain analyst @oro_crypto, stating, “It is clear that there is no major capital rotation from BTC to ETH; what we are seeing is new capital flowing into Ethereum.”
To support this claim, the Realized Cap metric for Bitcoin was assessed. This metric tracks the value of BTC based on the last on-chain transaction price. As of July 25, Bitcoin’s Realized Cap stood at a record $1.018 trillion. This suggests continued investment in Bitcoin rather than a divestment in favor of Ethereum.
Despite Bitcoin’s price showing brief pauses, the Realized Cap’s steady climb indicates ongoing capital accumulation. Historically, such phases have preceded sharp upward movements in BTC price. Thus, rather than shifting funds into Ethereum, investors are continuing to hold or accumulate Bitcoin.
Ethereum Growth Driven by Independent Capital Inflows
The Ethereum rally appears to be fueled by its own momentum and growth prospects. Carmelo Alemán, an on-chain analyst, pointed out that Ethereum’s price growth in July aligns with increased investment interest, rather than reallocations from Bitcoin.
The phrase “Genesis Law” was referenced in the CryptoQuant analysis, indicating early-stage capital inflow patterns within Ethereum’s ecosystem. This concept aligns with the behavior observed in July—strong ETH accumulation without negatively affecting BTC’s Realized Cap.
Therefore, ETH’s current uptrend reflects genuine investor interest in its ecosystem, not a redistribution of funds from Bitcoin. Market data confirms that Ethereum’s gains are backed by separate capital entries.
Bitcoin and Ethereum Continue to Attract Independent Investments
Both Bitcoin and Ethereum are experiencing capital inflows independently. While Ethereum’s price climb has drawn attention, Bitcoin’s record in realized capitalization reflects continued investor confidence.
On-chain data offers a clear view of investor behavior. Ethereum’s rally is not being “paid for” by Bitcoin sales. Instead, the two assets are growing simultaneously, supported by distinct sources of capital.
