Why Is Crypto Down Today? Understanding the Market Correction on July 25, 2025

Over the past 24 hours, the cryptocurrency market capitalization has dropped by 5.1%, moving further away from the recently reached $4 trillion mark to $3.84 trillion. The overall market is down today, with the majority of the top 100 coins by market capitalization showing red since yesterday. Meanwhile, total crypto trading volume remains steady at around $225 billion.

Key Highlights

• Crypto market cap has retreated from the recently hit $4 trillion.
• More coins among the top 100 are green today compared to yesterday, but the majority remain in the red.
• Bitcoin (BTC) is down to $115,282, while Ethereum (ETH) is up to $3,621.
• Market sentiment is declining, signaling rising caution among investors.
• US ETH spot ETFs have seen inflows for 15 consecutive days.
• US BTC spot ETFs resumed positive inflows.
• The current sideways movement in BTC has weakened investor enthusiasm and triggered profit-taking.
• Analysts view the correction as a healthy pause within a larger upward trend.
• Early signs of capital rotation into altcoins are emerging.

Crypto Winners & Losers

Unlike the previous day when all top 10 coins were down, today five are green and three are red (excluding stablecoins).
• Bitcoin (BTC) decreased by 2%, trading at $115,282.
• Ethereum (ETH) increased by 1.9%, trading at $3,621.
• Tron (TRX) led gains with a 3.6% rise to $0.3148.
• Solana (SOL) fell the most among top coins, down 2.8% to $177.57.
Within the top 100 coins, about 25 are green, a significant improvement from just four the previous day. Two coins recorded double-digit gains:
• Ethena (ENA) surged 14.8% to $0.4933.
• Curve DAO (CRV) rose 11.3% to $1.02.
The largest declines were moderate, with Mantle (MNT) down 3.5% at $0.7354 and Jupiter (JUP) down 2.9% at $0.5243. Over the last 24 hours, more than $721 million in leveraged crypto bets were liquidated, primarily affecting Ethereum, Bitcoin, and XRP. Investor focus also turned to Galaxy Digital, which transferred 17,123 BTC to multiple centralized exchanges within 12 hours, sparking market interest.

Note: Galaxy Digital deposited over 10,000 BTC ($1.18B) to exchanges in 8 hours, part of a larger holding of 80,009 BTC ($9.68B).

Meanwhile, Strategy, the company with the largest Bitcoin treasury, expanded its preferred stock offering (STRC) to $2 billion, reflecting strong investor demand for BTC exposure through traditional investment vehicles. Additionally, Christie’s International Real Estate launched a dedicated crypto division staffed with lawyers, analysts, and crypto experts. Christie’s CEO Aaron Kirman stated, “The trend was obvious – crypto is here to stay and will only grow bigger in the coming years.”

Market Outlook: Temporary Correction or Reversal?

Ruslan Lienkha, Chief of Markets at EU-based Web3 platform YouHodler, commented:

“Bitcoin’s prolonged consolidation phase has led to a broader market correction across major altcoins. The current sideways movement in BTC has weakened investor enthusiasm and triggered profit-taking across the cryptocurrency sector. However, from a technical analysis standpoint, the overall market structure remains bullish, suggesting the recent pullback may be more of a temporary correction than a reversal.”

Despite short-term weakness, the medium-term outlook remains constructive. Investor appetite for risk assets is supported by a favorable macroeconomic environment, low recession risks, and ongoing capital flows into equities and digital assets. The correction is seen as a healthy pause within a larger upward trend. Unless a major shock occurs, BTC and major altcoins are expected to resume upward momentum in the coming weeks.

“The technical picture, including higher lows on longer timeframes and strong on-chain fundamentals, continues to support the bull market thesis.”

However, Lienkha cautions that the long-term outlook faces uncertainties such as inflation, escalating trade tensions, and new US tariff measures. Gadi Chait, Head of Investment at Xapo Bank, noted that crypto momentum cooled after last week’s positive regulatory news but fundamentals like ETF flows and institutional accumulation remain strong. Bitcoin’s market dominance (~60%) has seen only modest fluctuations despite altcoin growth, indicating early stages of capital rotation into altcoins—a typical bull market pattern. Chait emphasized the evolving interplay between Bitcoin’s stability as “digital gold” and Ethereum’s platform utility shaping institutional strategies. While altcoin seasons may offer enhanced returns, Bitcoin is expected to remain the anchor of institutional crypto portfolios.

Levels & Events to Watch

• Bitcoin (BTC) is trading around $115,282, having hit an intraday high of $119,415 and a low of $115,259. Investors watch if BTC dips below $115,000 or recovers above $118,000 soon.
• Ethereum (ETH) trades at $3,621 after rising from $3,530 to $3,754 and then pulling back. ETH aims to reclaim $3,750, potentially rising to $3,850.
• Crypto market sentiment dropped slightly to 66 (borderline greed) from 67 yesterday, indicating positive but cautious mood.
• US BTC spot ETFs reversed outflows with $226.61 million inflows on July 24. Fidelity led with $106.58 million, followed by VanEck ($46.36 million) and BlackRock ($32.49 million).
• US ETH ETFs continued 15 days of inflows totaling $231.23 million, led by Fidelity ($210.06 million), while Grayscale saw $18.54 million outflows.
Economists expect delayed impact from US tariffs, which could increase inflation and market volatility. Rising inflation and trade tensions may prompt central banks to maintain hawkish policies, potentially pressuring risk assets including crypto. Meanwhile, digital asset platform OSL Group raised $300 million in equity financing, the largest public crypto capital raise in Asia, to accelerate global expansion in regulated stablecoin infrastructure and compliant payment rails.

Quick FAQ

• Why did crypto move against stocks today?

Crypto declined over 24 hours while US stock indexes closed mixed due to ongoing tariff negotiations and major tech earnings.

• Is this dip sustainable?

The dip appears typical with room for recovery, but US macro factors like tariffs, inflation, and Fed policy could cause deeper corrections.

Additional FAQ

What is causing the crypto market decline?

A: The crypto market is experiencing a decline due to investor caution, profit-taking, and broader market corrections despite otherwise bullish market indicators.

Which cryptocurrencies recorded gains today?

A: Cryptocurrencies like Tron (TRX), Ethena (ENA), and Curve DAO (CRV) have recorded gains, with Ethena surging the highest at 14.8%.

How many leveraged crypto bets were liquidated recently?

A: Over $721 million in leveraged crypto bets were liquidated over the past 24 hours.

How did Galaxy Digital influence the market today?

A: Galaxy Digital's transfer of 17,123 BTC to multiple centralized exchanges sparked significant market interest.

Crypto Market's Take

Navigating the crypto markets during volatile times can be challenging, but understanding market movements is crucial. Platforms like Crypto Market AI offer tools and market intelligence to help traders make informed decisions. Our analysis tools and insights aim to demystify these complex market scenarios, providing up-to-date information on trading volumes, price movements, and market sentiment. Using our AI-powered trading bots, users can automate trades and manage risk with precision, ensuring they capitalize on market opportunities even in times of market downturns.

More to Read:

• Crypto Market Today
• AI Agents Revolutionizing Crypto Trading
• Understanding the Impact of ETF Inflows on Crypto

Source: Originally published at CryptoNews on July 25, 2025.