Ethereum News Today: Global Crypto Market Loses $66 Billion in 24-Hour Sell-Off as Profit-Taking and Leverage Drive Altcoin Slump

The global cryptocurrency market experienced a sharp correction, shedding over $66 billion in value within 24 hours as profit-taking and leveraged positions triggered a broad sell-off. Bitcoin, the largest cryptocurrency by market capitalization, held steady above $118,000, maintaining a tight trading range between $116,000 and $119,000. However, major altcoins including Ethereum (ETH), XRP, and Cardano (ADA) faced significant declines, with ETH dropping below $4,000, XRP falling below $3.50, and ADA stagnating under $1. The total crypto market cap now stands at approximately $3.83 trillion, down from recent peaks [1].

The decline was driven by multiple interrelated factors. First, profit-taking following a strong rally in July led to a wave of selling, particularly in speculative altcoins. Leverage exacerbated the downturn, as forced liquidations accelerated the price drops for altcoins like Solana, Dogecoin, and meme tokens. Fartcoin, for instance, fell 15% in a single day [1]. Second, uncertainty surrounding the upcoming Federal Reserve meeting and a new U.S.-EU trade deal—despite reduced tariffs—spilled into crypto markets, compounding investor caution. Third, movements by large “whale” holders, including the activation of older Bitcoin wallets, signaled potential shifts in long-term holder behavior, though no immediate price breakout materialized [1].

Regulatory delays also played a role. The U.S. Securities and Exchange Commission (SEC) postponed decisions on key Bitcoin and Solana ETF applications, pushing deadlines into September and October. This delay disappointed investors hoping for institutional adoption, further pressuring altcoins [1]. Analysts noted that public company ETH reserves have fallen from 22% to 19.6% since May, reflecting reduced institutional interest in Ethereum [7].

While Bitcoin’s stability reinforced its role as a store of value amid macroeconomic uncertainties, altcoins struggled with liquidity constraints and competition from layer-2 solutions. Ethereum’s three-month decline of 53% highlighted structural challenges, while XRP’s failure to break above $3.50 and ADA’s stagnation below $1 underscored broader skepticism. Market participants are now monitoring whether Bitcoin can defend its $117,200 support level and whether regulatory clarity or Fed action will reignite bullish momentum [1].

The market’s bifurcation underscores Bitcoin’s dominance in uncertain times. Investors are shifting capital toward the leading cryptocurrency, viewing it as a safer haven compared to riskier altcoins. However, 10x Research has warned of “hidden weaknesses” despite inflows into crypto assets, cautioning about speculative bubbles and valuation sustainability [2]. For now, the sector remains in consolidation mode, with recovery dependent on key macroeconomic and regulatory developments.

[1] Coinpedia, "Bitcoin Holds Steady, but ETH, XRP, and ADA Price Drop Hard" (July 20, 2025): https://coinpedia.org/news/bitcoin-holds-steady-but-eth-xrp-and-ada-price-drop-hard/

[2] Coinpedia, "Billions Flow Into Crypto—But 10x Research Warns Big Trouble Ahead" (June 27, 2025): https://coinpedia.org/news/billions-flow-into-crypto-but-10x-research-warns-big-trouble-ahead/

[7] CoinCentral, "Crypto Whales Are Dumping Ethereum for Cardano" (July 28, 2025): https://www.mitrade.com/au/insights/news/live-news/article-3-990101-20250728