The crypto market took a sharp downturn, with Bitcoin slipping to around $63,877, down 1.65% for the day after failing to break past the $67,000 resistance earlier this week. This retreat wiped out nearly all the gains made in the last seven days, dragging Ethereum, XRP, Solana, and other major coins lower alongside Bitcoin.
Multiple Factors Drive the Sell-Off
The decline cannot be pinned on a single cause. Rising oil prices pushed crude above $100 per barrel, reigniting inflation concerns and triggering a risk-averse mood that spilled over into crypto. Bitcoin’s dominance climbed to 59% as capital fled altcoins. The pressure intensified when U.S. equities also dropped sharply, pulling Bitcoin below $65,000 and knocking Ethereum and Dogecoin down by roughly 3% each.
Another headwind came from the crypto investment side: spot Bitcoin ETFs, which had fueled the July rally, saw their first outflows in a week, signaling waning investor enthusiasm. use liquidation added to the turmoil, with $282 million wiped out on July 24, mostly from long positions. Simultaneously, $1.43 billion worth of Bitcoin and Ethereum options expired, contributing to the market’s deteriorating sentiment, as reflected by the Fear and Greed Index plunging to 37, firmly in fear territory.
Geopolitical and Industry Challenges
Geopolitical tensions flared between the U.S. and Iran, fueling broader risk aversion globally. Failed diplomacy and ongoing strikes have dimmed hopes for a quick ceasefire. The crypto industry itself added to negative sentiment: Poolin Technology, once the largest Bitcoin mining pool, filed for Chapter 11 bankruptcy in the U.S. with liabilities estimated between $100 million and $500 million. This followed BitMEX’s announcement that it would shut down operations by the end of September.
Almost all major cryptocurrencies followed Bitcoin’s downward path. Ethereum could not sustain above $1,900 and dropped to around $1,800. XRP failed near $1.14, while Dogecoin and other riskier assets sold off aggressively. The CoinDesk 20 Index showed widespread losses, with Sui, Cardano's ADA, and NEAR falling 3 4%, and Solana down about 2.5%. The privacy coin Monero was a rare exception, rising nearly 3% on the day and 12% for the week, suggesting some rotation within specific sectors.
Year-to-date, the picture remains grim for many tokens: XRP, Solana, Dogecoin, and Ethereum have all lost over 37%. Only TRON and Hyperliquid show notable gains this year.
Bitcoin now tests the key $64,000 support level. The coming days will reveal if it can hold or if further declines are imminent.
