TL;DR

Interest rate hikes by central banks and recent volatility have pushed investors away from risk assets like Bitcoin and Ethereum.
The total crypto market cap broke key support levels and dropped to $3.72 trillion; Bitcoin fell below $117,261 to $116,700, dragging altcoins down with it.
Some analysts see potential buying zones if prices stabilize, but recommend diversifying portfolios into solid projects rather than relying solely on Bitcoin.

The crypto market is facing a period of weakness marked by heightened volatility in recent days. Central banks’ decisions to raise interest rates have led investors to avoid riskier assets, including Bitcoin and Ethereum.

Adding to the pressure from financial institutions are growing geopolitical tensions, which are fueling the shift toward traditional safe-haven instruments.

Risk Aversion Weighs on the Market

Technically, the total crypto market capitalization broke through several support levels and dropped to $3.72 trillion. This decline has raised concerns about the possibility of a deeper correction. Bitcoin followed the same path, falling 2% on the day and breaking below $117,261 to reach $116,700. The next support sits at $111,187, and if that level breaks, further declines could follow.

The market drop is the result of several factors. On one hand, risk aversion is increasing as financing costs rise. On the other, ongoing uncertainty driven by the war in Ukraine and other global crises is pushing fund managers toward lower-volatility assets. This explains the outflows from crypto exchanges and the move into more stable bonds and currencies.

Still, despite the bearish outlook, some experts believe these support breaks could present buying opportunities. If Bitcoin and total market capitalization manage to stabilize around current levels, a rebound may follow. However, the margin for error remains thin, and any negative news could trigger renewed sell-offs.

Cautious investors are using this period to reassess their wallet allocations. The recommendation is to spread capital across projects with strong fundamentals and proven technology. It’s also wise to diversify into assets that aren’t solely dependent on Bitcoin’s price movements.

What About the Altcoins?

Staying informed is essential. Tracking support and resistance levels, along with closely following monetary policy developments, helps anticipate sharp market swings. Patience also plays a key role, as crypto valuation cycles often alternate between correction and recovery phases.

As for the performance of major altcoins: Ethereum (ETH) is down 2.1%, trading around $3,650. XRP (XRP) dropped 4%, hovering near $3.1. BNB (BNB) remained mostly flat at $774 per unit. Solana (SOL) slipped nearly 3% to $182 per token. Dogecoin (DOGE) took a heavier hit, falling 4.5% to $0.2275. Cardano (ADA) is down 3% to around $0.80. Finally, TRON (TRX) posted a slight gain of 0.3%, trading at $0.3151.

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Filed under: News - @ July 25, 2025 8:40 pm