🚨🚨Why the Market Fell: Key Drivers Behind the Decline
The following are the key factors why the crypto market is down today
1. Whale & Miner Profit-Booking
According to CryptoQuant, Bitcoin miners offloaded ~15,000 BTC worth about $1.8B after the July rally. This is while whales executed their third profit-taking cycle since mid-2024. Additionally, options markets predicted further downside, with traders buying puts anticipating a 10–30% decline.
2. Leverage Liquidation Cascade
The selloff was worsened by a 112% spike in BTC liquidations, totaling $151M , with $143M from long positions. Notably, open interest rose 9.5% even as funding rates plunged 49%, revealing how stretched leverage had become. This caused a cascade of forced selling, dragging the market lower and bringing sentiment down from yesterday’s “Greed” to today’s “Neutral.”
3. Technical Breakdown
The market cap broke below its 7-day SMA at $3.85T and is now testing the 23.6% Fibonacci retracement at $3.82T. With RSI at 42.07, there’s still decent room for a dip before hitting oversold territory. The key level to watch is $3.73T, a break below could invite deeper correction to $3.57T.
Signs of a Bottom?
The Exchange Flow Balance chart, which I’ve shared from Santiment, offers an important clue. Over the past few days:
BTC shows a streak of net outflows, suggesting whales and long-term holders are removing assets from exchanges.
ETH’s netflow appears neutral-to-slightly-positive, indicating mixed sentiment.
BTC ETH onchain
This mismatch between price decline and exchange behavior implies that while prices are falling, investors aren’t panic-selling, they may be preparing for a re-entry.
