Bitcoin News Today: Bitcoin Holds Steady at $119K as Crypto Market Dips $120B on Memecoin Losses

The cryptocurrency market witnessed a significant $120 billion contraction within 24 hours, driven by steep losses in memecoins such as Dogecoin, Shiba Inu, and Pepe. Despite the broader downturn, Bitcoin held steady near $119,000, maintaining a neutral position as investors gravitated toward riskier assets [1]. The total market capitalization plummeted from $3.92 trillion to $3.80 trillion, reflecting heightened sell-off pressure across high-volatility tokens [1]. Dogecoin fell 7.99%, Shiba Inu dropped 6.30%, and Pepe declined 9.06%, with smaller-cap tokens like Fartcoin experiencing drops exceeding 17% [1]. The volatility underscores the speculative nature of memecoins compared to more established cryptocurrencies.

Regulatory delays in the U.S. and instability in Indian exchanges emerged as critical factors influencing market sentiment. The U.S. Securities and Exchange Commission (SEC) postponed decisions on the Truth Social Bitcoin ETF and Grayscale’s Solana Trust conversion, extending uncertainty for investors [1]. Meanwhile, concerns over India’s crypto landscape deepened after Coinbase reportedly considered acquiring CoinDCX, a platform that had recently faced a $44 million hack and a significant valuation decline [1]. These developments amplified caution among traders, accelerating the sell-off in high-risk tokens.

Bitcoin’s resilience amid the turmoil was attributed to its stable On-Balance Volume (OBV) and a Relative Strength Index (RSI) of 60.9, indicating consolidation rather than active selling [1]. Analysts noted that Bitcoin’s established market position and lower volatility distinguished it from memecoins, which remain vulnerable to regulatory scrutiny and speculative trading [1]. The lack of active selling in Bitcoin suggests the broader decline was not driven by large-scale liquidation of the leading cryptocurrency but rather by concentrated risk-taking in the meme sector.

The event highlights the crypto market’s sensitivity to external triggers. Regulatory ambiguity in the U.S., a key market for institutional adoption, and operational risks in emerging markets like India created a dual headwind for investor confidence [1]. While Bitcoin’s stability reaffirmed its role as a market anchor during periods of instability, the performance of memecoins underscores the inherent risks of assets lacking fundamental utility. Investors are advised to monitor regulatory updates and token-specific vulnerabilities, particularly in sectors prone to rapid shifts in sentiment [1].

The market’s correction aligns with historical patterns where speculative assets bear the brunt of downturns, while more mature cryptocurrencies act as a buffer. With the SEC’s delayed decisions and ongoing exchange instability in India, short-term uncertainty is expected to persist, testing the market’s ability to regain equilibrium [1].

Source: [1] Bitcoin Near $119K Amid $120 Billion Crypto Market Dip Led by Memecoin Losses July 29, 2025 (https://en.coinotag.com/bitcoin-near-119k-amid-120-billion-crypto-market-dip-led-by-memecoin-losses/)