Crypto Market Bloodbath: What’s Driving the July 2025 Selloff?

Crypto's getting punched in the face today—here's why.

Macro Mayhem Strikes Again

Fed chair Powell's hawkish remarks sent risk assets tumbling. Traders are pricing in two more rate hikes by September, crushing speculative plays.

Liquidity Crisis Goes Viral

Another CeFi lender just froze withdrawals. The contagion's spreading faster than a meme coin pump—$2B in positions liquidated since midnight UTC.

Bitcoin Can't Catch a Bid

Dominance drops to 38% as altcoins get slaughtered. Even the 'digital gold' narrative isn't saving BTC from the risk-off tsunami.

Silver Lining Playbook

Veterans are scooping up blue chips at 70% off ATHs. Meanwhile, Wall Street banks are shorting retail via inverse ETFs—some things never change.

The leading digital asset, Bitcoin (BTC) price has lost 1.15% in the last hour, 1.05% in the last 24 hours, and 1.79% in the last 7 days. Although BTC still holds a major dominance (more than 60%), such a situation indicates a greater level of uncertainty, which could be caused by significant correction or a profit taking at local, high levels.

There is also heavy pressure on ethereum (ETH), causing the wider altcoin correction. The second-largest crypto by market cap has dropped 2.21% in the past hour, 1.34% over the last day, and 3.25% during the week, a sign of uncertainty on the part of investors as the network upgrades and scaling worries take center stage.

Even XRP has not been able to avoid the correction in the market. The token has declined by 2.47% in the last one hour, 2.42% in the last 24 hours and has dropped by 5.70% this week, although the XRP community has tried to regain steam by creating developments in the ecosystem over the recent times.

At the same time, BNB (Binance Coin) has lost 2.27%, 3.65%, and 1.19% over 1 hour, 24 hours and the last 7 days respectively. Even though BNB has demonstrated resilience over the last few months by achieving multiple new ATH, it has failed to hold its ground during such moments of volatility.

One of the sharpest drops was recorded in Solana price where the altcoin lost 3.34% on an hourly basis, 4.13% on a daily basis, and 8.35% over a span of a week as traders abandon high-volatility altcoins. The direction in price shows that more investors were becoming bearish probably as a result of short-term holders selling.

Even meme content like Dogecoin (DOGE) was immune to the ongoing market correction. The DOGE memecoin has lost 4.24% in the last hour, 3.84% since yesterday, and 12.60% in the week, regardless of its hyper active community across the globe.

All in all, the current slump can be a result of a number of factors including low volumes, market uncertainty on international economic policies and market burn-out. The fact that everything has been declining in the bigger tokens over such short periods is a further indicator of the weak sentiment of the market.

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