Ethereum News Today: Global crypto markets plunge 3%-10% in July 2025 as ETF outflows and speculative trading trigger $40B selloff

Global cryptocurrency markets experienced a sharp correction in late July 2025, with Bitcoin and major altcoins suffering significant losses amid heightened volatility. The selloff, which erased nearly $40 billion in market value within a week, was driven by ETF outflows, technical breakdowns, and growing concerns over speculative trading. Bitcoin fell below $118,000, triggering automated sell orders, while Ethereum (ETH) and XRP dropped over 3% and 10% respectively, marking one of the most abrupt corrections in recent history [5][6].

The liquidation data underscored the severity of the downturn. CoinGlass reported that $625.5 million in long positions were liquidated, with altcoins bearing the brunt of the losses. Ethereum investors lost approximately $152.78 million, XRP holders faced $88.58 million in losses, and Solana (SOL) and Dogecoin (DOGE) each lost over $40 million. Lesser-known DeFi tokens like SPK and PUMP also saw substantial liquidations [1]. The imbalance in leveraged trading became evident as open interest in meme coins and altcoins had surged in recent weeks, creating a fragile equilibrium vulnerable to sharp price reversals [2].

Technical triggers accelerated the decline. Bitcoin’s break below $118,000—a critical psychological threshold—activated stop-loss orders, while Ethereum’s failure to hold above $3,700 after hitting high RSI levels exacerbated bearish momentum [7]. On-chain analytics highlighted that while institutional panic appeared limited, key support levels remained intact, suggesting potential stabilization [1]. However, the absence of a unified regulatory framework and the 24/7 algorithmic trading environment in crypto markets amplified volatility, making price recovery more challenging compared to traditional assets [5].

Analysts pointed to speculative excess as a contributing factor. A July 15 report from Glassnode noted soaring open interest in meme coins, signaling a potential bubble [2]. Regulatory uncertainty and macroeconomic jitters further eroded investor confidence, with even a Trump-endorsed crypto policy failing to reassure markets [6]. The selloff also revealed structural weaknesses, as high leverage in meme coin trading and ETF outflows created a self-reinforcing cycle of selling pressure.

Market participants are now closely monitoring open interest figures and funding rates as predictive indicators. While some observers remain cautiously optimistic that long-term holders have not initiated mass liquidations, the episode has raised questions about the sustainability of leveraged trading strategies. The interplay of algorithmic trading, ETF flows, and speculative positioning continues to define the crypto market’s trajectory, with volatility likely to persist in the near term [1][5].

Source: [1] [Why Crypto Market Is Down Today? Bitcoin Price Drops To $117k] https://coinpedia.org/news/why-crypto-market-is-down-today-bitcoin-price-drops-to-117k/

[2] [Is a Meme Coin Bubble Bursting? ETH Drops 3%, XRP Plunges 10%] https://www.newsbreak.com/tradingkey-331884976/4128605163226-is-a-meme-coin-bubble-bursting-eth-drops-3-xrp-plunges-10-ethereum-reserve-stocks-tumble

[5] [Breaking: BTC Price Rises As US And EU Near Trade Deal] https://coingape.com/btc-price-rises-as-us-and-eu-near-trade-deal/

[6] [Crypto Crash: XRP, ETH and XLM Pullback Despite Trump’s Stamp of Approval for Crypto] https://coinpedia.org/news/crypto-crash-xrp-eth-and-xlm-pullback-despite-trumps-stamp-of-approval-for-crypto/

[7] [Ethereum Dives Below $3700: What Triggered the Sudden Reversal?] https://www.hokanews.com/2025/07/ethereum-dives-below-3700-what.html