Bitcoin News Today: Bitcoin and Major Cryptocurrencies Tumble 15% as Profit-Taking and Macro Uncertainties Weigh on $3.89T Market Cap

Bitcoin and major cryptocurrencies such as Pepe (PEPE), Jasmy Coin (JASMY), and Stellar (XLM) faced significant declines on July 25, driven by a combination of profit-taking, technical indicators, and macroeconomic uncertainties. The total crypto market capitalization fell to $3.89 trillion from a year-to-date high of $4 trillion, with Bitcoin retreating $8,200 from its peak. Altcoins like PEPE, JASMY, and XLM dropped over 15% from their weekly highs, reflecting heightened volatility and investor caution [1].

The downturn followed a sharp rally earlier in the year, prompting experienced and retail investors to book profits. Institutional players, including Galaxy Digital, offloaded $500 million in Bitcoin, while Ripple co-founder Chris Larsen sold $140 million worth of XRP. On-chain analytics revealed reduced holdings by large investors, with whale ownership of Pepe tokens declining from 8.88 trillion to 8.84 trillion [2].

Technical factors also contributed to the sell-off. Mean reversion, a theory suggesting asset prices return to historical averages, played a role as tokens like XLM traded far above their 100-day moving averages. For instance, XLM’s price reached $0.4160, significantly higher than its $0.3145 moving average, with a standard deviation near a December high. Overbought conditions, indicated by a Relative Strength Index (RSI) of 89.30, further signaled a potential pullback [3].

Macroeconomic developments compounded the pressure. The upcoming Federal Reserve meeting and its potential decision to delay rate cuts added uncertainty, as crypto markets often react to monetary policy shifts. Simultaneously, the August 1 tariff deadline under Trump’s administration created additional risk aversion. These factors intensified selling as investors positioned for potential regulatory and economic changes [4].

The decline was also exacerbated by expiring derivative contracts. $14.59 billion in crypto options reached their “Max Pain” levels, pushing Bitcoin and Ethereum toward price points with high open interest. A $3.5 billion sell-off by Galaxy Digital further accelerated the correction, with Bitcoin briefly falling below $116,000. Institutional and retail investors shifted to risk-off assets, reflecting a broader market rotation [5].

Whale activity highlighted altcoin fragility. Large holders offloaded positions in JASMY and XLM amid concerns over stagnant adoption and regulatory scrutiny. Stellar’s market dominance waned as capital flowed into Bitcoin and Ethereum. Smaller tokens like PEPE and JASMY, already sensitive to liquidity shocks, faced intensified selling. Analysts noted a waning “altcoin season” narrative, with investors prioritizing capital preservation over speculative bets [6].

Despite short-term bearish momentum, some market participants remain cautiously optimistic. A surge in Bitcoin open interest suggested renewed positioning for a rebound, though outcomes depend on macroeconomic stability. New infrastructure, such as BlackRock’s Ethereum ETF and Solana’s compliance upgrades, could offer recovery catalysts if confidence stabilizes [7].

The selloff underscored crypto markets’ susceptibility to external shocks and shifting sentiment. With regulatory scrutiny and macroeconomic uncertainties persisting, investors are likely to remain cautious. Bitcoin’s performance remains pivotal, as its trajectory will likely dictate broader market direction.

Sources:

[1] [Crypto News - Latest Cryptocurrency News](https://crypto.news/)

[2] [RSI Hunter: Crypto Price Charts](https://rsihunter.com/)

[3] [Decrypt: BTCUSD | Bitcoin Price Today](https://decrypt.co/price/bitcoin)

[4] [CFGI.io: Stellar Fear and Greed Index](https://cfgi.io/stellar-fear-greed-index/)

[5] [Binance: JasmyCoin Profile](https://www.binance.com/en/square/profile/cryptonews_official)

[6] [Bitget: Solana Price USD](https://www.bitget.com/price/solana)

[7] [Crypto News: BlackRock’s Ethereum ETF](https://crypto.news/)