The cryptocurrency market experienced a significant jolt on Friday, witnessing a decline of around 6.7% and erasing over $160 billion from its total valuation, which now stands close to $3.84 trillion, according to insights from CoinGecko. This downturn comes after a series of four consecutive weeks filled with gains, indicating a potential stall in the bullish momentum that had propelled digital assets to awe-inspiring near-record highs.
Bitcoin, which had recently climbed above the promising $120,000 mark, has taken a step back to approximately $115,300, reflecting a 2.6% drop over the past 24 hours. Ethereum, on the other hand, fell 1.3% to $3,596, while XRP experienced a steeper dive of 3.6%, now trading at around $3.07. This widespread decline appears to be a result of a broad market correction spurred by leveraged liquidations and shifting investor sentiment.
One of the catalysts for this shake-up appears to be the shocking actions from Galaxy Digital, which amplified market jitters with a staggering sell-off of $1.5 billion in Bitcoin. According to Lookonchain, the firm dumped 10,000 BTC, approximately valued at $1.18 billion, significantly pressuring the market. In addition, it removed $370 million in USDT from exchanges including OKX and Binance, hinting strongly at continued sell-off strategies.
Bitcoin sell-off still underway!#GalaxyDigital deposited another 2,850 $BTC($330.44M) to exchanges 11 minutes ago.https://t.co/lD8tgkC4Pyhttps://t.co/T3wOpRSbnw pic.twitter.com/eJ4pEvDvOQ— Lookonchain (@lookonchain) July 25, 2025
Following this maneuver, Galaxy Digital offloaded an additional 2,850 BTC worth around $330.44 million to centralized exchanges. This strategy points toward a cycle of selling that traders are increasingly preparing for, bracing themselves for potential market turbulence ahead.
The turmoil doesn’t end there. A staggering $721 million in leveraged positions were liquidated in the past 24 hours, as reported by the liquidation tracker CoinGlass. Leading the charge, Ethereum faced liquidations exceeding $163.9 million, closely followed by Bitcoin at $155.5 million, and XRP with nearly $49 million. These figures underscore the risks traders face when heavily leveraged in response to sudden price corrections.
Liquidation pressures escalated during the day, culminating in nearly $273 million worth of long positions liquidated within a single 12-hour window. Notably, the largest single liquidation order occurred on the OKX BTC-USDT-SWAP market, ringing in at a remarkable $17.35 million.
Some may see this sudden downturn merely as a natural retracement following an extended rally. The crypto market cap had just recently flirted with the $4 trillion mark, and altcoins were enjoying disproportionately high gains. Yet, the Altcoin Season Index has since plummeted to 40, suggesting a weakening trend for smaller-cap tokens in comparison to Bitcoin.
Meanwhile, institutional activity plays a crucial role in dictating the market’s current volatility. Despite ongoing inflows into Bitcoin ETFs indicating long-term bullish sentiment, strategies involving rotations from major players such as BlackRock and Fidelity are believed to be causing short-term price fluctuations. Coupled with broader macroeconomic uncertainties and profit-taking from major holders, these moves have weighed heavily on price performance in the short term.
Interestingly, retail sentiment continues to hold remarkably strong. The Crypto Fear & Greed Index is still reflecting “Greed,” indicating that many traders view this correction as a prime opportunity to buy rather than a sign of a bearish shift. However, analysts warn that such overly optimistic sentiment amidst technical vulnerabilities could lead to further declines.
From a technical perspective, Bitcoin has fallen below critical support levels, with traders now closely monitoring the $116,000 zone for signs of stabilization. Ethereum faces its challenges too, as a spike in its validator queue suggests that network activity may be cooling off. XRP, having breached its near-term support, is at risk of testing the $2.72 mark if the selling pressure continues.
Not all coins have succumbed to losses. Among those thriving, CoinGecko reports that niche tokens like Vine, The Innovation Game, and Pepecoin recorded impressive gains—44.7%, 46%, and 35%, respectively—indicating that selective interest persists even amid widespread market weakness.
As some investors embrace this dip as a healthy correction, others tread carefully. With nearly 208,000 traders liquidated in a single day and heightened volatility among major tokens, the path forward appears tumultuous. Nevertheless, long-term conviction remains steadfast, demonstrating that while the landscape is fraught with challenges, the spirit of cryptocurrency innovation continues to thrive.
To stay updated on the latest developments in the crypto space, be sure to follow reliable sources and news outlets, such as CoinDesk, and keep an eye on the evolving market dynamics.