Bitcoin News Today: Crypto Market Plunges 17% as Bitcoin, Altcoins Dive on Profit-Taking, $968M Liquidations, and Regulatory Delays

The cryptocurrency market experienced a sharp selloff on July 23, 2025, with Bitcoin (BTC) and altcoins losing significant ground amid a confluence of profit-taking, leveraged liquidations, and regulatory uncertainty. The total market value plummeted by over $130 billion in a single day, marking one of the steepest declines in recent months [1]. While Bitcoin retreated below $118,000 after a 17% rally in the preceding month, altcoins faced even steeper losses, with XRP, DOGE, and PEPE dropping 12.4%, 14%, and 13.5%, respectively [3].

The decline was fueled initially by traders locking in profits following weeks of robust gains. Bitcoin’s surge created a natural correction phase, as investors shifted positions to capitalize on short-term gains [3]. This wave of selling pressure disproportionately affected altcoins, which had risen in tandem with Bitcoin but lacked the liquidity to sustain the momentum. Over $968 million in leveraged long positions were liquidated within 24 hours, with Ethereum and XRP accounting for $195 million and $113 million in forced exits [3]. The cascading liquidations exacerbated volatility, particularly in high-leverage assets, as stop-loss orders triggered further downward momentum [1].

Regulatory developments also played a pivotal role in dampening sentiment. The U.S. Securities and Exchange Commission (SEC) abruptly paused approval for Bitwise’s crypto index ETF, citing unresolved legal issues surrounding XRP [3]. This decision added to existing uncertainties, as traders awaited the White House’s upcoming crypto policy report and the Federal Reserve’s interest rate decision on July 30 [3]. The regulatory ambiguity prompted institutional participants to adopt a cautious stance, with spot Bitcoin ETFs recording three consecutive days of outflows totaling $85.8 million on July 23 alone [3]. Ethereum ETF inflows also slowed, dropping to $332 million from $726 million the prior week, signaling a cooling of institutional interest [1].

The market’s broader decline was compounded by macroeconomic positioning shifts. Open interest in crypto derivatives contracts—reaching $634 billion—unwound rapidly as traders reduced exposure ahead of potential central bank actions [1]. Leveraged altcoins, particularly those tied to margin trading, faced $735 million in liquidations as prices plunged [2]. Analysts attributed the selloff to a combination of technical exhaustion and risk aversion, with some suggesting the drop represented a healthy correction following months of gains [5].

Despite the sharp downturn, early signs of resilience emerged. Bitcoin rebounded to around $119,000 after dipping near $117,000, while some altcoins showed tentative signs of recovery [3]. However, the divergence between crypto and traditional assets—such as equities—highlighted shifting risk preferences. While equities remained stable, crypto markets retreated, reflecting investors’ prioritization of safety amid macroeconomic uncertainties [5].

The sell-off coincided with Block Inc.’s inclusion in the S&P 500, indirectly boosting the index’s exposure to Bitcoin. While this development did not directly influence crypto prices, it underscored the growing integration of digital assets into traditional finance—a trend that could shape future market dynamics [6].

Sources:

[1] [Why is crypto down today? BTC, ETH, XRP, in red] (https://crypto.news/why-is-crypto-down-today-btc-eth-xrp-in-red/)

[2] [Why is the Crypto Market Going Down Today?] (https://coinpedia.org/news/why-is-the-crypto-market-going-down-today-2/)

[3] [Why Has Crypto Dropped Today?] (https://coinpedia.org/news/why-has-crypto-dropped-today/)

[4] [Leveraged Altcoins Trigger $735M Liquidations in Crypto] (https://www.ainvest.com/news/xrp-news-today-leveraged-altcoins-trigger-735m-liquidations-crypto-sell-2507/)

[5] [Bitcoin Price, XRP Fall. Why the Crypto Rally Is Stalling] (https://www.barrons.com/articles/bitcoin-price-xrp-ether-cryptos-6bf990e0)

[6] [Here's what happened in crypto today] (https://www.tradingview.com/news/cointelegraph:b431ea497094b:0-here-s-what-happened-in-crypto-today/)