Bitcoin (BTC) faced renewed selling pressure on Wednesday, briefly dipping below the $95,000 support level before recovering slightly. This pullback triggered a broader market correction across major cryptocurrencies, with all top altcoins except XRP posting losses. XRP emerged as the day’s outperformer, gaining over 2% and maintaining its recent momentum.
Ethereum (ETH), Binance Coin (BNB), and Solana (SOL) all saw modest declines, while Bitcoin itself shed nearly 2% in value. The broader crypto market cap dropped by 7% over the past 24 hours, now sitting at $3.49 trillion—a sharp reversal from recent highs and raising concerns about the sustainability of the current bull cycle.
Signs of a Cooling Bull Market?
The surge in Bitcoin’s price throughout 2024 was largely driven by institutional inflows and the landmark approval of spot Bitcoin exchange-traded funds (ETFs) in the United States. While institutional interest continues to simmer, macroeconomic headwinds—particularly a strengthening U.S. dollar and shifting risk sentiment—are now influencing Bitcoin’s trajectory into 2025.
David Morrison, Senior Market Analyst at Trade Nation, shared his insights with FXStreet:
"Bitcoin has been somewhat disappointing. After briefly breaking above $100,000 on Monday afternoon, it fell back under that level within just 24 hours. It’s continued to face selling pressure this morning and is now back around Thursday’s levels, when it was building momentum for an upward move."
"The daily MACD has sharply declined from the ‘overbought’ levels seen in November and December. It may need to find a bottom and consolidate further before buyers return in force—unless there’s a significant shift in overall market risk appetite," he added.
Morrison remains cautiously optimistic, expecting demand to eventually return. However, Ilya Volkov, CEO of YouHodler, takes a more bearish stance on the outlook for 2025.
"Last year’s crypto growth was primarily fueled by ETF launches, which sparked massive retail demand. In 2025, we anticipate potential pullbacks in global equity indices, which could spill over into crypto ETFs and lead to lower valuations across digital assets. While it's hard to predict the depth or duration of this correction, one key indicator to watch will be the performance of the S&P 500—it often sets the tone for global markets," Volkov explained.
His bearish sentiment was reinforced by Tuesday’s weak Bitcoin ETF inflows, following strong gains on Friday and Monday.
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Market Cap Drops 7%: What’s Next for Crypto?
As of Wednesday, the total cryptocurrency market capitalization has contracted to $3.49 trillion. Traders are increasingly concerned about the health of the ecosystem and what lies ahead for altcoins in 2025. Bitcoin’s dominance has slightly declined on both weekly and daily timeframes, hovering around 57%, suggesting growing interest in alternative assets despite BTC’s struggles.
According to TradingView data, the combined market cap of all non-Bitcoin cryptocurrencies shows early signs of recovery. However, this figure remains far below the $1.71 trillion peak reached during the 2021 bull run. Until this metric sees a sustained rebound, the long-term sustainability of a Bitcoin-led bull market in 2025 remains uncertain.
A recent report from K33 Research revealed that average spot exchange trading volume for Bitcoin declined by 15% month-over-month. With traders waiting for renewed demand and buying pressure, derivative markets may see increased two-way liquidations for both Bitcoin and top altcoins.
Key Factors Influencing Crypto Sentiment
- Strong U.S. Dollar: A resilient U.S. economy and rising Treasury yields are making risk-on assets like crypto less attractive.
- Federal Reserve Policy: Robust non-farm payroll data in June reduced expectations for a July rate cut, supporting the dollar and pressuring gold and crypto alike.
- Equity Market Spillover: Movements in traditional markets—especially the S&P 500—are increasingly correlated with crypto performance.
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Altcoin Outlook: Can XRP Lead the Recovery?
Among major altcoins, XRP stood out with a +2% gain, bucking the broader downtrend. Its resilience may signal growing confidence in regulatory clarity or renewed institutional interest. However, most other large-cap altcoins failed to gain traction, reflecting overall market caution.
Ethereum continues to face technical resistance despite ongoing network upgrades. BNB and Solana showed limited movement, indicating trader hesitation amid macro uncertainty.
For altcoins to reclaim momentum, two conditions must align:
- A return of strong inflows into crypto ETFs.
- A shift toward risk-on sentiment in global financial markets.
Until then, sideways or volatile price action is likely across the board.
Core Keywords Identified:
- Bitcoin price
- Crypto market cap
- Altcoin performance
- Bitcoin ETF
- Market correction
- Cryptocurrency outlook 2025
- Risk sentiment
- Spot Bitcoin ETF
Frequently Asked Questions (FAQ)
Q: Is the Bitcoin bull run over?
A: Not necessarily. While short-term momentum has stalled, structural drivers like ETF adoption and institutional interest remain intact. Corrections are normal during bull markets, and many analysts expect consolidation before another potential rally.
Q: Why did the crypto market drop 7% in 24 hours?
A: The decline was triggered by a combination of profit-taking after Bitcoin’s brief move above $100K, weak ETF inflows, a stronger U.S. dollar, and reduced expectations for near-term Fed rate cuts—all contributing to risk-off sentiment.
Q: Will altcoins recover if Bitcoin stabilizes?
A: Historically, altcoins tend to follow Bitcoin’s lead. If BTC regains upward momentum and holds key support levels, altcoins could see renewed interest—especially those with strong fundamentals or upcoming catalysts.
Q: How does the S&P 500 affect cryptocurrency prices?
A: The S&P 500 often reflects overall investor risk appetite. When equities rise, especially tech stocks, capital tends to flow into crypto as well. Conversely, equity sell-offs can trigger similar moves in digital assets.
Q: What should investors watch in Q3 2025?
A: Key indicators include Bitcoin ETF flows, U.S. monetary policy decisions, global equity trends (especially the S&P 500), and on-chain activity such as wallet growth and transaction volume.
Q: Can Bitcoin reach $120,000 in 2025?
A: It's possible, but dependent on renewed demand, favorable macro conditions, and sustained institutional participation. The gap between current prices (~$109K) and the all-time high is narrow—just $1K—but breaking through requires strong conviction buying.
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Final Outlook: Consolidation Before the Next Move?
Despite recent setbacks, the fundamental narrative behind Bitcoin and digital assets remains compelling. The introduction of spot ETFs has permanently altered the investment landscape, bringing crypto into mainstream portfolios. However, 2025 may be defined not by relentless gains but by consolidation, volatility, and increasing correlation with traditional markets.
Traders should prepare for continued swings driven by macro data, Fed policy signals, and ETF flow trends. For long-term holders, dips may present strategic entry points—especially if global risk sentiment improves later in the year.
While uncertainty looms, one thing is clear: Bitcoin’s journey is far from over. The question isn’t whether it will move again—but when, and how high.