Why Is Crypto Crashing? Bitcoin Plummets to $117K, Dragging Ethereum, XRP and Dogecoin Down With It
- What's Causing Today's Crypto Market Crash?
- Bitcoin Price Analysis: How Low Can BTC Go?
- Altcoins Get Crushed: Dogecoin Leads Losses
- Will Crypto Recover? Analyst Price Targets for 2025
- Crypto Market FAQ
The cryptocurrency market is experiencing a brutal correction today as Bitcoin (BTC) tumbles 5% from its all-time high of $123,000 to $117,550, triggering a domino effect across altcoins. Dogecoin (DOGE) leads the bloodbath with an 8% nosedive, while Ethereum (ETH) struggles below $3,000 and XRP faces rejection at $3. The sell-off comes after investors cashed out a staggering $3.5 billion in profits within 24 hours, with long-term Bitcoin holders responsible for 56% of the profit-taking. While the pullback has liquidated $675 million in leveraged positions, analysts remain bullish about crypto's long-term prospects, with Standard Chartered maintaining its $200,000 Bitcoin price target for 2025.
What's Causing Today's Crypto Market Crash?
Three primary factors are driving today's market downturn:
First, we're seeing massive profit-taking after Bitcoin's parabolic rally from $108,000 to $123,000 created what traders call a "supply gap" between $110,000-$116,000. Glassnode data shows whales deposited 1,800 BTC to Binance, with transactions over $1 million accounting for 35% of inflows - classic distribution signals.
Second, the liquidation cascade has been brutal - $675 million wiped out in 24 hours, including a single $98.1 million BTC long on Binance. Bitcoin longs got wrecked ($333 million), followed by ethereum ($113 million) and XRP ($36 million).
Third, macroeconomic jitters ahead of today's CPI print have traders nervous. The dollar's sitting NEAR 3-week highs as markets brace for potentially hot inflation data that could delay Fed rate cuts.
Source: TradingView
Bitcoin Price Analysis: How Low Can BTC Go?
BTC's current pullback looks like healthy profit-taking after its 21% 3-week surge. The BTCC research team notes two critical support levels:
1.: The CME futures gap that typically gets filled
2.: The make-or-break level where institutional bids reportedly sit
"Following any 2-3 standard deviation move, we almost always see mean reversion," notes Paul Howard from Wincent. The $110,000-$115,000 range appears to be the new institutional support zone, with limit orders reportedly stacked at these levels.
Altcoins Get Crushed: Dogecoin Leads Losses
The meme coin darling got wrecked today, plunging 8% to $0.18 with volume spiking to 735M DOGE - nearly double the 24-hour average. Technicals show DOGE got rejected at local resistance and may be heading back into its downward channel from May.
Ethereum failed to hold $3,100 after testing February highs, now wobbling at $2,975. The $2,820 level is critical - a break below could signal a deeper correction toward $2,200.
XRP got smacked down from $3.02 to $2.78 as traders de-risk ahead of the ProShares XRP Futures ETF launch on July 18. The $2.59-$2.65 zone from May highs could provide support if selling continues.
Source: TradingView
Will Crypto Recover? Analyst Price Targets for 2025
Despite today's carnage, institutional analysts remain overwhelmingly bullish:
| Asset | Price Target | Timeframe | Analyst |
|---|---|---|---|
| Bitcoin | $200,000 | EOY 2025 | Standard Chartered |
| Ethereum | $8,000 | 2026 | EGRAG |
| XRP | $3.63 | Near-term | John Squire |
The BTCC team believes today's pullback is a healthy consolidation before the next leg up. "Funding rates were getting frothy at these levels," one analyst noted. "This flushout creates better risk/reward for new entries."
Crypto Market FAQ
Why is cryptocurrency crashing today?
Three main reasons: 1) Massive profit-taking after Bitcoin's rally to $123k, 2) $675 million in liquidations crushing Leveraged positions, and 3) Macro uncertainty ahead of CPI data.
Will Bitcoin recover in 2025?
Most analysts say yes - Standard Chartered maintains its $200k target, citing institutional adoption and supply constraints. The key level to watch is $108k support.
Why are all cryptos falling together?
High correlation during risk-off events. Today's $333M BTC long liquidations triggered cascading selloffs in ETH, XRP and Doge as traders reduced exposure.
Is this the end of the bull market?
Unlikely. Similar 5-8% pullbacks occurred 17 times during the 2021 bull run. The BTCC team views this as healthy consolidation before continuation.
