The pullback has cooled expectations that so-called alternative digital currencies are poised to outperform the market bellwether following its recent record breaking run.
Close to $400 million in long positions were liquidated in the last 24 hours — Bitcoin leading the cuts with $159 million, according to data compiled by researcher Coinglass.
The crypto market’s decline is “a healthy and necessary correction” from previous highs, according to Alex Kuptsikevich, chief market analyst at FxPro. The total value of all cryptocurrencies in circulation briefly topped $4 trillion in July, according to CoinGecko data.
Even a decline to the $3.4 trillion mark would be viewed as profit-taking, Kuptsikevich said in a note on Friday. “As long as the market remains above this level, there is no point in talking about a change in the medium-term trend,” he added.
“We expect to see further consolidation while Bitcoin remains below monthly trendline resistance, currently at around $125,000, which capped Bitcoin’s advance last week,” said Tony Sycamore, an analyst at IG Australia.
“The broader uptrend remains intact, but momentum has cooled and traders are cautious,” said Rachael Lucas, a crypto analyst at BTC Markets.
— With assistance from Suvashree Ghosh and Emily Nicolle
Updated, July 25, 2025: Freshens up article for U.S. audience.
