Bitcoin Drops 2.5% to $105,182 as Crypto Market Value Falls to $3.25 Trillion

Bitcoin experienced a notable decline on July 1, 2025, dipping to approximately $105,182 despite closing the previous month at a record high. This drop marked the beginning of the third quarter, which saw significant fluctuations in the crypto market. Bitcoin managed to maintain its position above the $105,000 mark, but the overall market sentiment was bearish, with altcoins experiencing more substantial losses. Ethereum, for instance, slid by 3.8% to a low of $2,393, while other major tokens such as Solana and Cardano posted losses exceeding 7%. The overall crypto market value decreased by 2.5% to $3.25 trillion, reflecting broader market weakness.

The decline in Bitcoin's price was accompanied by a rise in its daily trading volume, which increased by 5.2% to $44.96 billion. This indicates that despite the price dip, there was continued activity in the market. However, Bitcoin's failure to break above key resistance levels prompted some traders to lock in profits, adding to the market pressure. The flagship crypto was trading at $105,700 but remained vulnerable to further downside if the recovery lost momentum.

Broader economic uncertainty and persistent inflation pressures continued to weigh on market sentiment. Concerns that the Federal Reserve may maintain elevated borrowing costs for longer than previously expected added to investor caution. Geopolitical tensions, particularly the upcoming July 9 tariff deadline, further exacerbated market volatility. The passage of President Donald Trump’s “Big Beautiful Bill” without crypto tax amendments also contributed to the negative sentiment.

Traditional markets showed mixed results, with the Nasdaq and S&P 500 edging down while the Dow Jones Industrial Average rose by 1%. Investors are now awaiting upcoming US labor market data, which could influence the Federal Reserve’s policy path and set the tone for risk assets in the days ahead. The relative stability of Bitcoin in the face of these declines emphasizes its position as the dominant digital asset, though its inability to break above key resistance levels has prompted some traders to lock in profits, adding to market pressure.

Over the past 24 hours, approximately 99,016 traders were liquidated, with total liquidations reaching $243.49 million. Long positions accounted for $207.14 million, while shorts represented $36.36 million. Bitcoin saw the highest liquidations at $57.93 million, followed by Ethereum at $33.04 million. This liquidation activity reflects the heightened volatility and risk in the market, as traders adjust their positions in response to price movements.

In summary, the crypto market experienced significant declines on July 1, 2025, with Bitcoin dipping to $105,182 despite a record monthly close. The overall market value dropped by 2.5% to $3.25 trillion, with altcoins posting more substantial losses. Broader economic uncertainty, persistent inflation pressures, and geopolitical tensions contributed to the bearish sentiment. Investors are now awaiting upcoming US labor market data, which could influence the Federal Reserve’s policy path and set the tone for risk assets in the days ahead. The relative stability of Bitcoin in the face of these declines emphasizes its position as the dominant digital asset, though its inability to break above key resistance levels has prompted some traders to lock in profits, adding to market pressure.