Crypto Market Tumbles: What’s Driving the July 1, 2025 Sell-Off?

Crypto bulls got trampled today as digital assets nosedived across the board. The bloodbath comes despite Wall Street's usual 'summer lull' promises—proving once again that markets eat calendar patterns for breakfast.

Major coins shed 5-15% in early trading, with Bitcoin leading the charge downward. No single catalyst emerges, but traders point to a perfect storm of leveraged liquidations and macroeconomic jitters.

Exchange data shows derivatives traders got caught with their hands in the cookie jar—again. Over $200 million in long positions evaporated faster than a meme coin's utility.

Meanwhile, traditional finance pundits are already dusting off their 'I told you so' tweets. Never mind that three of them just launched crypto ETFs last quarter.

This dip could represent a buying opportunity... or the start of something uglier. Either way, it's another reminder: in crypto winter or summer, volatility never takes vacation days.

Crypto Winners & Losers

Of the top 10 coins per market cap, only three are green today, and only one of the three saw a significant increase.

has fallen 0.9% since this time yesterday to the price of $106,974. Moreover, it recorded the highest monthly close at $107,171 in June.

Similarly,has decreased by 0.8% in that same period, changing hands at $2,460.

recorded the highest drop in this category. It dropped 1.7% to the price of $0.1629.

increased the most. It’s up 1.6% to $2.22. Also,andappreciated by 0.5% and 0.4%, respectively.

Additionally, ten of the top 100 coins saw their prices increase over the past day. Five of these saw increases over 1% and two are up more than 3%.andappreciated by 5.1% and 3.8% to $523 and $0.1865, respectively.

On the other hand, two coins recorded double-digit drops.is down 10.4% to $25.22, whilefell 10.3% to $1.17.

While the prices are in their consolidation phase, institutions are still pushing forward.expanded into the European market using, allowing users to trade tokenized US stocks and crypto futures with up to 3x leverage.

Moreover,(formerly) bought an additional 4,980 BTC, whileadded 1,005 BTC to their stash.

Metaplanet has surpassed mining company Cleanspark in becoming the 5-largest corporate holder of $BTC after buying another 1,005 BTC for $108M.

The firm now holds 13,350 BTC acquired for around $1.31 billion at around $97,832 per Bitcoin. The treasury is worth $1.45 billion. pic.twitter.com/ivdkctdvvA

Also, major news came from South Korea, as it ended the 14-year ban on kimchi bonds, that is local institutions investing in foreign currency-denominated bonds issued for domestic use. Stablecoins are expected to see a significant benefit from this move. Speaking of which, two major neobanks,and, are set to expand their range of crypto and stablecoin-related operations.

‘BTC Entering Historically Weakest Quarter Without Strong Catalysts’

Bitcoin recorded the highest monthly close at $107,171 in June.

James Toledano, Chief Operating Officer at Unity Wallet, commented that this record monthly close and the 30% Q2 gain “highlight remarkable resilience amid macro uncertainty.” He argues that the coin holding above $104,000 “signals institutional confidence and strengthens its role as a maturing store of value — something Bitcoin maximalists have known for some time.”

Bitcoin records highest monthly close at $107,171 in June

Bitcoin $BTC closed June at $107,171, marking its highest monthly closing price on record, according to a chart from TradingView.

Strong second-quarter closes typically set the tone for bull cycles, Toledano adds. This reflects a shift from long-term holders to institutional or short-term hands, not exhaustion, he notes.

However, “on-chain data flags concerns: a ‘critical demand deficit’ and negative apparent demand suggest that buyer appetite may not be keeping pace with supply.” Also, rate cut expectations, political tensions, and a declining apparent demand signal short-term caution.

Nonetheless, the team is “quietly optimistic about momentum into Q3. If BTC sustains levels above $104,000, the psychological and technical breakout could attract sidelined capital — and there is good reason to believe that there is an abundance given the recent flight from U.S. equities.”

Meanwhile, analysts at theexchange argue that the coin is entering the historically weakest quarter without strong catalysts.

“For now, bitcoin is in a waiting game. Structural positioning remains intact, and there’s no major breakdown risk as long as $94-99,000 holds. But for new all-time highs to be reclaimed, a catalyst, either in the form of macro relief, strong ETF flow momentum, or a breakout in global liquidity, will be necessary.”

Moreover, Q3 has been the weakest quarter for Bitcoin historically, the analysts say. Average volatility is subdued here as well, “adding to our bias of range-bound price action continuing for longer.”

Additionally, the market environment is “highly reactive,” “conviction is fragile, and volatility is amplified by leverage.”

That said, open interest is now rebalanced, and the derivatives landscape is cleaner, they add. This sets “the stage for more structurally driven positioning going forward. However, as new positioning enters the market, we expect deviations above and below the $100-110,000 range, albeit we expect these to be short-lived in the NEAR term as we approach the end of Q2. The Q2 close is particularly important because there is usually a significant seasonality change in market conditions between Q2 and Q3,” the analysts conclude.

Crypto is Down: Levels & Events to Watch Next

At the time of writing, BTC trades at $106,974. At one point, it fell from the intraday high of $107,938 to the daily low of $106,831. The coin made an attempt to surpass the $108,000 level yet again, but failed at that point.

After it manages to break and hold that level, its next target will be $108,980, before it moves to breaking the all-time high. The support level currently stands at $106,450.

At the same time, ethereum is currently trading at $2,460. It surged from its intraday low of $2,443 to the daily high of $2,518, before retreating to the current price. The coin also increased 1.2% over the past week.

Additionally, the crypto market sentiment continues moving within a narrow range in neutral territory: between 47 and 52 over the past few days. The Fear and Greed Index stands at 50 today. This indicates persistent cautiousness in the market. Investors are awaiting further signals to react.

Furthermore, on 30 June, US BTC spot exchange-traded funds (ETFs) recorded the 15th consecutive day of positive flows, adding $102.14 million. Onlyand Ark & 21 Shares saw flows: the former took in $112.32 million, while the latter lost $10.18 million.

At the same time, US ETH ETFs also recorded inflows of $31.76 million. Fidelity saw positive flows of $25.7 million, while BlackRock saw $6.07 million in the same period.

Also, Bloomberg ETF analysts Eric Balchunas and James Seyffart raised their expectations for US approval of spot exchange-traded funds tracking,, andto 95%.

In April, Balchunas revealed that more than 70 crypto ETFs were awaiting review by the(SEC).

Trying to figure out what could go into an SEC framework aside from CFTC approved futures we looked at a few potential data points. The entire note and our midyear outlook can be seen at this LINK for Bloomberg Terminal clients: https://t.co/7C0bO3oEI3 pic.twitter.com/Y9CcCdNAGF

Meanwhile,issuerfiled an application to become a national trust bank in the United States, following a public listing that valued the company at nearly $18 billion. This WOULD allow it to directly manage USDC reserves.

Quick FAQ

The crypto market has decreased over the past 24 hours, while the US stock market went up by the Monday closing time. For example, thewent up by 0.52%, theincreased by 0.64%, and therose by 0.63%. The stocks reacted to a quieter geopolitical scene, a possibility of trade agreements that would lead to lower tariffs, and Optimism that themay cut interest rates this year.

The market is in its consolidation phase. Additional decreases are possible, especially when pulled down by macro factors, but analysts expect to see prices rise further in the coming months.