Crypto Market Drops 4% as Bitcoin Falls 4% from All-Time High

Bitcoin (BTC) and the broader cryptocurrency market experienced a significant decline as bearish signals dominated trading. The crypto market cap plunged by nearly 4% as BTC and other cryptocurrencies traded in the red. The decline is largely due to traders locking in their profits after the flagship cryptocurrency raced past $123,000 to an all-time high of $123,091 on Monday. BTC is down over 4% in the past 24 hours, and is trading around $116,954.

Ethereum (ETH) has also lost momentum as selling pressure returns. The world’s second-largest cryptocurrency is down nearly 2%, trading around $2,977, having slipped below the crucial $3,000 mark. Solana (SOL) is down over 3%, struggling to stay above $160 amid growing selling pressure. Toncoin (TON), Litecoin (LTC), and Bittensor (TAO) also registered substantial declines over the past 24 hours.

Kazakhstan’s sovereign wealth fund has identified crypto as a viable asset for inclusion in the country’s national reserve. The country’s central bank is reportedly studying allocation strategies used in Norway, the Middle East, and the US. According to local media outlets, Kazakhstan plans to invest part of its gold reserves, foreign exchange reserves, and assets held by its wealth fund in crypto. The reports cited Timur Suleimenov, head of the National Bank of Kazakhstan, who had said the bank is exploring aggressive strategies to generate investment income. Suleimenov also claimed that Kazakhstan plans to establish a national crypto asset reserve using digital assets seized by its law enforcement agencies.

Hungary has passed a law to imprison traders using unauthorized crypto exchanges to trade crypto. Traders using these “unauthorized crypto-asset exchange services” could face two years in prison, with penalties increasing based on the value of the trades. The law also targets unauthorized crypto service providers, who now face up to three years in prison. However, local reports claim the new laws have created confusion among crypto companies. Hungary’s Supervisory Authority for Regulatory Affairs (SZTFH) has 60 days to develop a compliance framework for the laws.

Michael Saylor’s Strategy has resumed its Bitcoin (BTC) buying spree, announcing the purchase of 4,225 BTC for $472 million. The latest purchase takes the company’s total holdings to 601,550 BTC valued at $73,243,825,675 at current prices. The most recent acquisition also takes Strategy’s Bitcoin yield to 20.2% year-to-date. This is Strategy’s first purchase after a brief pause. The previous purchase came on June 30, when the company bought 4,980 BTC for $531 million. Saylor reaffirmed his conviction about BTC in a discussion on X, stating the flagship cryptocurrency would be “going up forever.”

Despite the decline during the ongoing session, analysts believe the uptrend will continue. The current drop has been attributed to profit-taking, as traders lock in their gains after BTC climbed to record levels over the past few sessions, peaking at $123,091 on Monday. Katie Stockton, founder and managing partner of Fairlead Strategies, believes that BTC could push to $135,000 before any substantial correction. Stockton added that stocks like Coinbase and Strategy, which track BTC markets, will also perform well. Other analysts offered similar predictions after BTC broke above $120,000 on Monday, crossing $123,000 on Coinbase before retreating. 10x Research head Markus Thielen stated, “Based on the July 10 breakout signal, which has historically led to an average 20% rally over the following two months, we project Bitcoin could reach $133,000. We expect some near-term consolidation, followed by a push toward $133,000, with our $160,000 year-end target still firmly in sight.” Meanwhile, LVRG Research director Nick Ruck made a bolder prediction of $150,000 for BTC, stating, “Investors are still looking at $150,000 as the next major price level to reach during this cycle. We remain optimistic that Bitcoin can continue, pending no sudden black swan events.”

Ethereum (ETH) declined sharply after crossing $3,000 on Monday, losing momentum after reaching a day high of $3,081. The world’s second-largest cryptocurrency is down over 1% during the ongoing session, trading around $2,984 as it struggles to reclaim $3,000. With the broader market also declining, analysts believe a short-term correction is imminent. However, it remains to be seen whether ETH can maintain its position above $2,900 or register a deeper correction. ETH’s price action suggests it is entering a consolidation phase. However, a bounce could occur if the price manages to stay above $2,900, and we could see an attempt to reclaim $3,000. On the other hand, a break below this level could drive the price towards $2,700-$2,800.

Solana (SOL) also registered a notable decline on Monday, losing momentum after reaching an intraday high of $168. SOL failed to cross $170 despite positive momentum, with the price down nearly 2% during the ongoing session, trading around $159. Solana (SOL) faced volatility and selling pressure on Thursday (July 3), ultimately registering a marginal decline. Selling pressure intensified on Friday as the price fell over 3%, slipping below $150 and settling at $147. SOL registered a marginal decrease on Saturday before rising nearly 3% on Sunday to reclaim $150 and settle at $151. Despite the positive sentiment, SOL was back in the red on Monday, dropping 1.97% to $148. The price recovered on Tuesday, rising nearly 2% to reclaim $150 and settle at $151. Buyers retained control on Wednesday as SOL rose 3.54%, crossing the 50-day SMA and settling at $157. Bullish sentiment intensified on Thursday as the price soared past $160, reaching an intraday high of $165 before settling at $164. SOL lost momentum on Friday after encountering selling pressure and volatility. As a result, it fell nearly 1% to $162. Sellers retained control on Saturday as SOL fell 1.38% and settled at $160. The price recovered on Sunday, registering a marginal increase and moving to $161. SOL raced to an intraday high of $168 on Monday as buyers attempted to overwhelm sellers and push above $170. However, the price lost momentum and fell to $162, ultimately registering a 0.69% increase. The current session sees SOL down nearly 2%, trading around $159. Buyers will look to regain control and push the price past $160.

Toncoin (TON) finally broke above the 20-day SMA last week as it raced to $2.94. However, it lost momentum over the weekend as it struggled to cross $3. Despite recent gains, TON is down nearly 2% during the current session, trading around $2.97. TON registered a marginal decline on July 3, dropping 0.43% to $2.85. Selling pressure increased on Friday as the price fell 3.99% and settled at $2.74. The price recovered over the weekend, rising 0.22% on Saturday and reaching an intraday high of $2.06 on Sunday. TON lost momentum after reaching this level and ultimately settled at $2.83, registering a 3.25% increase. TON lost momentum on Monday, falling 3.53% and settling at $2.73. However, it recovered on Tuesday, rising 2.41% and settling at $2.80. Buyers retained control on Wednesday as TON rose 1.23% and settled at $2.83. Bullish sentiment intensified on Thursday as TON rallied, rising nearly 4% to cross the 20-day SMA and settle at $2.94. The price faced volatility and selling pressure on Friday as sellers attempted to overwhelm buyers. Despite this, TON rose 0.61% and settled at $2.96. Buyers retained control on Saturday as the price rose 1.37% and settled at $3. TON lost momentum on Sunday, dropping 0.98% to end the weekend at $2.97. Bullish sentiment returned on Monday as TON rose nearly 2% to reclaim $3 and settle at $3.02. However, the price is back in the red during the current session, down 1.68%, trading around $2.97.

Litecoin (LTC) raced to an intraday high of $92,26 on Thursday (July 3) before settling at $89.15, ultimately registering an increase of 2.09%. However, it lost momentum on Friday, dropping 2.55% and settling $86.88. Price action was mixed over the weekend as LTC rose 0.80% on Saturday before registering a marginal decline on Sunday to settle at $87.41. Selling pressure intensified on Monday as LTC fell 1.60% and settled at $86.01. The price recovered on Tuesday, rising nearly 2% and settling at $87.62. Buyers retained control on Wednesday as LTC rose 3.53% to cross $90 and the 50-day SMA, settling at $90.72. Bullish sentiment intensified on Thursday as LTC rallied, rising nearly 5% and settling at $94.87. The price surged to an intraday high of $98.22 on Friday. However, it lost momentum after reaching this level and dropped to $94.23, ultimately falling 0.67%. Sellers retained control on Saturday as the price fell 1.46% and settled at $92.86, but not before dropping to an intraday low of $90.74. Despite the selling pressure, LTC recovered on Sunday, rising nearly 3% to end the weekend at $94.54. Buyers retained control on Monday as the price reached an intraday high of $98.03 before settling at $95.64. However, selling pressure has returned during the ongoing session, with LTC down nearly 3%, trading around $93.11.

Bittensor’s (TAO) latest rally has taken the token’s price past $400, a level not seen since the beginning of June. TAO started the previous weekend in the red, dropping nearly 4% on Friday. Sellers retained control on Saturday as the price fell almost 1% to $322. It recovered on Sunday, rising 1.29% but was back in the red on Monday, dropping nearly 2% and settling at $320. TAO recovered on Tuesday despite selling pressure, registering a marginal increase and moving to $321. Bullish sentiment intensified on Wednesday as the price rose over 8% to cross the 20-day SMA and settle at $347. Buyers retained control on Thursday as TAO rose 8.03%, crossing the 50 and 200-day SMAs and settling at $375. The price continued rising on Friday, registering an increase of almost 5% and settling at $394. Despite the positive sentiment, TAO lost momentum on Saturday, dropping 2.44% and settling at $384. However, it recovered on Sunday, rising nearly 2% to end the weekend at $390. TAO started the current week on a bullish note, rising almost 5% to cross $400 and settle at $408, but not before reaching an intraday high of $432. The current session sees TAO up 2.50%, trading around $419.