Bitcoin News Today: SEC Delays Altcoin ETFs Crypto Market Plummets 1.76% Altcoins Drop 2.53%-7.64%

The crypto market experienced a sharp correction on July 25, 2025, with global market capitalization declining 1.76% to $3.88 trillion and a further 0.75% drop to $5.14 trillion in subsequent sessions [1][4]. While Bitcoin (BTC) remained resilient near its $120,000 resistance level, altcoins faced intense selling pressure, with Ethereum (ETH) down 2.53%, XRP losing 4%, Solana (SOL) and BNB each falling over 2.4%, and Cardano (ADA) plunging 6.17% in 24 hours. Dogecoin (DOGE) and Sui (SUI) also recorded single-day declines of 7.64% and 8.30%, respectively [1]. The selloff was driven by a combination of regulatory uncertainty, profit-taking dynamics, and macroeconomic pressures.

A key factor was the U.S. Securities and Exchange Commission’s (SEC) decision to delay approval of spot ETFs for altcoins, despite greenlighting Bitcoin and Ethereum products [1]. Analysts had anticipated a broader ETF rollout would attract institutional capital, but the absence of a timeline for altcoins has led investors to exit riskier positions, triggering panic selling [1]. Concurrently, Bitcoin’s consolidation phase has prompted traders to rotate profits from altcoins into BTC, which is perceived as a safer asset amid volatility [1]. This trend has amplified downward momentum in smaller-cap tokens, particularly those that have surged recently.

Macroeconomic conditions further exacerbated the downturn. A stronger U.S. dollar, bolstered by recent trade agreements between the U.S. and EU, has historically pressured crypto assets, which often underperform in dollar-strengthening environments [1]. The Fidelity report highlighted Bitcoin’s rolling three-year beta of 2.6 relative to the S&P 500, underscoring its heightened sensitivity to broader market swings [5]. Leveraged positions and overleveraged portfolios, already stressed by earlier gains, have amplified losses during the correction [6]. Privacy-focused projects like Monero (XMR) also faced turbulence after a governance dispute at a major mining pool raised concerns about network stability [3].

Systemic risks loom large as the market grapples with overlapping challenges. Warnings from industry analysts emphasize the role of leverage, regulatory ambiguity, and timing in triggering cascading sell-offs [6][7]. For example, the SEC’s prolonged inaction on altcoin ETFs has left investors in limbo, while leveraged traders face margin calls as prices fall [6]. The confluence of these factors has eroded confidence, pushing traders toward risk-off strategies and deepening the sell-off.

The current phase of crypto’s cycle remains fragile, with rapid gains and speculative positioning vulnerable to external shocks. Investors are now scrutinizing for signs of stabilization, though the path forward remains clouded by regulatory, macroeconomic, and governance pressures [4].

Sources:

[1] https://coinpedia.org/news/why-is-the-crypto-market-crashing-today-3/

[3] https://www.tradingview.com/news/cointelegraph:b431ea497094b:0-here-s-what-happened-in-crypto-today/

[4] https://www.coinbase.com/en-ca/explore

[5] https://www.reddit.com/r/Buttcoin/comments/1mbolkk/ft_the_coming_crypto_crisis/

[6] https://99bitcoins.com/analysis/next-crypto-crash/

[7] https://www.forbes.com/digital-assets/assets/bitcoin-btc/