The global cryptocurrency market has taken a sharp downturn today, shedding over 1% from its total market cap, now sitting at $3.8 trillion. Meanwhile, 24-hour trading volume has spiked by 9.15%, a sign of turbulence rather than growth. From Bitcoin’s stumble below $116k to widespread liquidations across altcoins, today’s decline is driven by a combination of over-leveraged bets, profit-taking, and capital flight from riskier assets.
Bitcoin’s drop below $116k shattered its major short-term support, triggering a massive $585M in long liquidations within 24 hours. ETH followed closely, losing $104M in longs, while altcoins like Dogecoin (-7%) and PAAL AI (-4.8%) were among the worst performers.
The average funding rate across exchanges (+0.008%) indicates excessive bullish leverage, now being punished. The domino effect pushed BTC liquidations up by 123%, forcing automated sell-offs and creating further downward pressure.
After a 16% gain over the last month, which was mainly driven by ETF optimism and retail FOMO, many traders are now cashing in. The 21-day RSI climbed to 74.25 (overbought territory), while MACD showed bearish divergence (-3.68B), hinting at trend exhaustion. Stablecoin inflows surged $11B in July, a signal that investors are temporarily parking funds in safer assets.
Altcoins are bearing the brunt as Bitcoin dominance rises to 60.8%. Illiquid and speculative tokens, such as memecoins, tanked sharply due to post-hype sell-offs and thin order books. Uncertainty around the GENIUS Act’s stablecoin regulations is further driving caution, reducing trader appetite for high-beta bets.
Today’s dip is less about panic and more about profit-taking, exaggerated by a high-leverage market setup. With the Fear & Greed Index still at a greed-driven score of 66, sentiment remains optimistic, but fragile. If BTC can defend $115k ahead of Friday’s U.S. PCE inflation data, we could see fresh buying emerge. However, a deeper macro sell-off or further liquidations may flip the sentiment decisively bearish.
A combination of long position liquidations, overbought technicals, and profit-taking after a major rally.
Not necessarily, as the key support at BTC’s $115k and ETH at $3,500 could bring dip-buyers back if held.
Keep an eye on Friday’s U.S. PCE data, Bitcoin’s support at $113k–$115k, and ETF inflow trends.
The German government could soon have a new chance to re-enter the Bitcoin (BTC) market.…
SOL Strategies, a Canadian-based publicly traded company that is focused on accumulating Solana coins, has…
The chairman of the United States Securities and Exchange Commission (SEC) Paul Atkins, announced the…
Is the old guard of meme coins finally showing its age? As Bitcoin hovers, the…
Justin Sun, founder of Tron (TRX), has backed down in the feud against World Liberty…
The latest XRP Price Prediction foresees a potential trip to $5 as fresh hope for…
