The total cryptocurrency market cap declined by 1.18% over the past 24 hours, reflecting a shift in investor sentiment. The Crypto Market Fear and Greed Index dropped to 34, indicating widespread fear among traders.
Bitcoin had been enjoying its longest streak of spot ETF inflows in nine months, a sign of growing demand and optimism. However, this trend abruptly reversed on July 23, with a net outflow of $225.1 million reported by SoSoValue, a platform tracking macro crypto data. This reversal coincided with escalating tensions between the U.S. and Iran and a rise in Brent crude prices, contributing to a broader risk-averse atmosphere across financial markets.
Market Liquidations and Price Movements
Bitcoin fell 1.35%, while Ethereum dropped 1.85%. Altcoins also followed suit, with the altcoin market cap excluding ETH declining by 1.17%. Some crypto treasury firms have abandoned their accumulation strategies and are now liquidating holdings, signaling a shift in institutional behavior.
Earlier in the week, short liquidations dominated, totaling $305.68 million on July 19 and 20, compared to $164.04 million in long liquidations. However, this trend has flipped dramatically, with $489.268 million in long liquidations occurring since then versus $205.13 million in short liquidations. Investors betting on further price increases are being forced out, intensifying the downward pressure on the market.
The recent price rally lacked significant new capital inflows and was mainly driven by short-term holders realizing losses, while bears maintained control. Bitcoin’s price action remains bearish, with resistance at around $67,000 holding firm. Failure to surpass this level increases the likelihood of a test near the $57,800 zone if selling pressure continues.
The market's current direction is uncertain but leans towards further declines, as key resistance has stalled momentum and forced a reevaluation of risk positions. The uptick in geopolitical risks adds an additional layer of uncertainty impacting crypto flows.
This content is informational and does not constitute financial advice.
