Bloodbath in Crypto: Why Bitcoin and Altcoins Are Tanking Today (July 2025)

Crypto markets just got sucker-punched—again. Here's what's driving the selloff.

Macro Mayhem: Fed chair Powell's 'higher for longer' rate comments sent risk assets into freefall. Traders are dumping speculative holdings faster than a hot Bitcoin mining rig.

Liquidity Crunch: Asian markets woke up to margin calls as BTC breached $50K support. Altcoins—always the leveraged play—got obliterated with double-digit losses.

ETF Outflows: Spot Bitcoin ETFs saw $1.2B in withdrawals this week. Wall Street's 'paper Bitcoin' experiment isn't looking so smart now.

Silver Lining?: Veteran traders are sniffing around ETH/BTC pairs at 0.045—a level that's screamed 'alt season' before. Meanwhile, crypto VCs are suddenly very interested in 'real-world use cases' (translation: they need new bagholders).

This isn't capitulation yet—just another reminder that crypto moves faster than your average hedge fund manager's moral compass.

Bitcoin and altcoins dropped because of the US holiday and profit-taking

The U.S. Independence Day holiday also contributed to a decline in trading activity, adding to downward pressure on digital assets. According to CoinMarketCap, 24-hour trading volume fell 33% to $94.57 billion.

The decline appears partly driven by profit-taking, as traders locked in gains from the recent rally. Several of the week’s best performers, including Pudgy Penguins, Bonk, Fartcoin, and Dogwifhat, were among Friday’s top laggards.

Still, the ongoing retreat could be temporary since bitcoin has strong fundamentals, with ETF demandrising and supply on exchanges falling. It has also formed a cup-and-handle and a bullish flag pattern, pointing to a rebound in the near term.