Why Is Crypto Down Today? Major Correction Hits Bitcoin, Ethereum, and Altcoins

The cryptocurrency market is facing a steep correction on July 15, 2025, as leading digital assets like Bitcoin (BTC) and Ethereum (ETH) retreat from recent all-time highs.

After briefly topping $123,000, Bitcoin plunged nearly 5%, trading at around $116,999 at press time. Ethereum also fell below the critical $3,000 threshold, while meme coins like Dogecoin and XRP experienced even sharper declines.

Market-wide, over 95 of the top 100 cryptocurrencies by market cap are in the red. The total crypto market capitalization has dropped by 6.7%, now sitting at $3.74 trillion. Analysts describe the movement as a healthy correction—but one intensified by several key factors.

1. Profit-Taking After Record Highs

Bitcoin’s surge to new all-time highs triggered massive profit-taking. Long-term holders, who accumulated BTC over 155 days ago, are estimated to have realized nearly $2 billion in profits in the past 24 hours alone, according to data from Glassnode.

This rapid profit realization created strong selling pressure, especially as BTC lacked stable support levels between $110K–$116K due to its swift ascent.

2. Whale Activity and Dormant Wallet Movements

Adding to the pressure was whale activity. Over 17,000 BTC—worth over $2 billion—was moved from dormant, Satoshi-era wallets to Galaxy Digital and major exchanges. These large-scale transfers flooded the market with supply and spooked investors, compounding the downward momentum.

Additionally, whale deposits on Binance surged, with over 1,800 BTC moved in a single day. These movements typically signal preparation for sell-offs or hedging, both of which apply downward pressure to price.

3. Massive Liquidations Shake the Market

The crash triggered $462.27 million in crypto liquidations over a 24-hour period. Bitcoin long positions took the biggest hit—over $156.72 million was wiped out. Ethereum followed with $95.25 million, and XRP saw $31.74 million in liquidations. The largest single liquidation was a $98 million BTC/USDT position on Binance.

As leveraged traders were forced to exit positions en masse, this cascade effect accelerated the market decline. Elevated funding rates and fading bullish momentum suggest caution is now overtaking risk appetite.

4. The Altcoin (ALT) Dump Adds Fuel to the Fire

While broader market forces drove the general correction, one token-specific event added further volatility: the Altcoin (ALT) crash.

In just 24 hours, ALT lost over 54% of its value, dropping to $0.004535 following a coordinated sniper wallet dump. Analysts at Crypto Beast allege that a group of wallets bought up 3% of ALT’s supply and dumped it for over $2.2 million in profit, exploiting the token’s low liquidity.

The event resembled a rug pull, prompting backlash and further damaging sentiment toward low-cap, influencer-backed meme coins. The incident stoked fears of similar behavior in other tokens, contributing to an overall risk-off tone in the altcoin market.

5. Regulatory Anxiety and Federal Reserve Uncertainty

Crypto’s plunge also coincides with growing macroeconomic uncertainty. U.S. inflation expectations have risen, and Fed Chair Jerome Powell hinted that tariffs and inflation could delay interest rate cuts. Traders now anticipate a more hawkish monetary policy environment, which typically hurts risk assets like cryptocurrencies.

Political pressure is also mounting, with President Trump calling for interest rates below 1%—a stance that clashes with the Fed’s current policy of 4.25–4.50%. Uncertainty surrounding ETF approvals and ongoing SEC actions against centralized exchanges adds to the tension.

What’s Next for the Crypto Market?

Despite the current decline, most analysts agree this is a healthy pullback within a larger bull trend. Critical support for Bitcoin lies between $110,000 and $115,000, with some suggesting a dip to $108,000 could still maintain the upward structure.

ETF inflows remain strong, institutional adoption continues, and key players like Standard Chartered are launching crypto trading services. This signals that while volatility may persist, long-term sentiment remains optimistic.

Final Thoughts

The current downturn in crypto markets is being driven by a perfect storm of profit-taking, whale movement, leveraged liquidations, and low-liquidity collapses like the one seen in Altcoin (ALT).

While fear has gripped short-term traders, structural support remains strong, and many experts continue to project Bitcoin reaching $150,000–$200,000 by the end of 2025.