$3.5B in BTC profits realized, led by long term holders; exchange inflows surged 33%, increasing sell side pressure.
$494.7M in crypto liquidations hit in 24 hours, with BTC RSI at 82.25 indicating overbought conditions and near term cooling.
Bitcoin ETFs added 8,958 BTC worth $1.08B, but inflows couldn’t offset leverage unwind; market eyes U.S. CPI as next driver.
The crypto market saw a sharp correction following yesterday and last week’s rally, as ETF inflows slowed and profit taking spiked. Bitcoin fell to around $116,895, dropping over 4% in 24 hours, while Ethereum managed to stay above the $2,988 level.
The global crypto market cap dropped by roughly 4%, now at $3.85 trillion. This pullback comes after Bitcoin’s climb toward $123,000 earlier in the week, where long-term holders opted to lock in profits, realizing $3.5 billion in a single day.
Profit Taking, Liquidations Drive Market Dip
Large scale profit realization weighed heavily on the market. According to CoinMarketCap, long term holders drove 56% of the $3.5 billion in realized Bitcoin profits. This is the largest single day profit taking move since April 2025.
Inflows into exchanges surged by 33%, hitting 148.25 billion in 24 hour trading volume, increasing sell side pressure. Meanwhile, leveraged positions were flushed out. Over $142 million worth of Bitcoin positions were liquidated.
Long positions made up 88% of the losses. This sudden unwinding came when Bitcoin failed to hold its $118,000 support level. Perpetuals funding rates remained positive at +0.01%, suggesting further position reductions could still unfold.
RSI Indicates Overbought Conditions
The market’s recent surge resulted in technical overextension. The RSI for the overall crypto market is at 82.25, its highest level since November 2024. Bitcoin’s dominance also grew to 63.39%, indicating a shift toward safer assets.
Despite the correction, the 7 day simple moving average at $3.65 trillion held as market support. However, the broader market failed to sustain momentum above the 23.6% Fibonacci retracement level at $3.59 trillion, creating a technical rejection.
ETF Inflows Persist, But Sentiment Softens
ETF activity is positive but insufficient to sustain recent highs. Over 8,958 BTC worth $1.08 billion flowed into Bitcoin ETFs on July 14. BlackRock’s iShares ETF led the inflows with 8,086 BTC, increasing its total holdings to 714,094 BTC.
Ethereum ETFs also saw inflows totaling 68,957 ETH, valued at around $208.94 million. BlackRock’s iShares ETH ETF received the largest share at 45,696 ETH. Still, this ETF-driven momentum was not enough to offset the impact of high leverage and profit realization.
The altcoin segment cooled. Despite HYPE reaching a record high above $49, the token saw a pullback amid broader market weakness. Meanwhile, smaller caps such as CROSS up by 61%, BGSC , and VELVET outperformed.
Market Faces Near Term Reset
The current correction shows strong profit taking, leverage liquidations, and overheated technicals following Bitcoin’s 39% 90 day rally. Despite ETF support and rising stablecoin inflows, short term caution dominates.
Liquidations hit $494.7 million in 24 hours, while the Fear & Greed Index is at 73, reflecting ongoing greed despite the retreat. The crypto market remains highly sensitive to macroeconomic signals. With the crypto Nasdaq correlation at 0.84, upcoming U.S. CPI data could be key in influencing the next trend.
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