Bitcoin Dips, Crypto Market Cap Slips Back to $3.8 Trillion After Hitting All-Time High
After breaking above an all-time high of $4 trillion, the global cryptocurrency market has seen a sharp pullback. On Thursday night and into Friday afternoon (25 July), the total crypto market capitalisation dropped to US$3.8 trillion, led by a downturn in Bitcoin (BTC) and other major altcoins.
According to data from CoinMarketCap, Bitcoin fell to US$116,000, marking a significant drop after its recent rally. This decline was echoed across several top altcoins, with Ethereum (ETH) down 1% to US$3,627, XRP slipping 3.62% to US$3.10, BNB losing 2.68% to trade at US$762, and Solana (SOL) shedding a sharper 6.66% to land at US$178.
The sudden dip comes just days after a wave of bullish sentiment pushed the crypto market to its historic high. Analysts attribute the correction to profit-taking, as investors opted to lock in gains after weeks of upward momentum.
Interestingly, despite the market pullback, trading activity saw a notable uptick. The 24-hour trading volume surged to US$214 billion, a 5.93% increase, indicating heightened market participation during the sell-off.
However, market liquidations also followed suit. According to Coinglass, over US$670 million was liquidated across major exchanges in the past day, with long positions bearing the brunt of the losses. This suggests that a large number of traders were betting on continued upward movement, only to be caught off guard by the sharp reversal.
Amid the red sea, a handful of altcoins managed to defy the trend. Maple Finance (SYRUP) led the gainers with a jaw-dropping surge of nearly 30%, driven by rising investor interest and speculative volume. Cronos (CRO) also bucked the broader trend, gaining 4.36%.
Market watchers are urging caution. “Corrections are a natural part of any bull cycle,” said Thomas Webber, an independent crypto analyst based in Sydney. “These pullbacks shake out weak hands and often pave the way for more sustainable rallies. The fundamentals behind Bitcoin and other major tokens remain intact.”
As volatility continues to define the crypto landscape, investors are reminded that while the market offers incredible upside, price swings — both up and down — remain an inherent part of the game.
With traders now eyeing the next major support levels, the coming days will prove crucial in determining whether this dip is just a brief detour — or the beginning of a broader correction phase.
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