The cryptocurrency market experienced a broad pullback on July 22, 2025, shedding approximately 5% of its total capitalization to fall below the $4 trillion threshold. Bitcoin (BTC) declined 1.2% to $117,854, while Ethereum (ETH) dropped 2.7% to $3,692. Major altcoins like XRP and BNB saw minor losses, while HBAR (-6%), XLM (-4%), and SUI (-3%) faced steeper declines. Memecoins weren't spared, with SHIB and BONK down 4%, and PEPE and WIF slipping 2%.
The downturn stems from profit-taking after a two-week rally, evidenced by whale movements of BTC and ETH to exchanges. Technical indicators show the Crypto Fear & Greed Index cooling to 68 (still in "greed" territory). Macroeconomic pressures intensified as U.S. spot Bitcoin ETFs recorded $131 million in net outflows – ending a 12-day inflow streak – amid rising bond yields and Federal Reserve policy uncertainty. Trade tensions ahead of an August 1 U.S. tariff deadline added to risk aversion.
Solana (SOL) defied the trend with a 5.1% surge to $198.97, briefly touching $200. Analysts like John Glover of Ledn maintain that the bull market's "fifth wave" could propel BTC to $140,000 by 2026, while AMINA's Werner Brönnimann noted "genuine institutional adoption" driving fundamentals despite sensitivity to Fed policy. Ethereum ETFs continued their inflow streak with $296 million added.