Today (July 23, 2025), the crypto market recorded a notable drop — Bitcoin lost about 1.17% and Ethereum fell 3.06%. Several factors are driving this movement:
📉 Main Causes of the Drop
1. Profit-Taking after Recent Highs
Analysts point out that retail traders and large investors (“whales”) are taking profits after the strong rally of recent weeks, generating selling pressure.
2. Capital Rotation to Altcoins
After Bitcoin's peak, the market is redistributing capital to altcoins, reducing BTC's dominance and pressuring its price.
3. Healthy Technical Correction
Experts classify the movement as a "healthy correction" after the rally. Technicians indicate an excess of overbought conditions, suggesting a temporary adjustment.
4. Regulatory and Political in the US
The pause of legislative projects like the GENIUS Act, along with the review of ETFs (e.g., Bitwise), has brought regulatory uncertainty that weighs on market sentiment.
5. Macroeconomic Scenario and Traditional Markets
Factors such as recent trade agreements – for example, US–Japan – and fluctuations in the stock markets also influence. Although stock markets have risen, the crypto segment feels the impact of global uncertainty.
Summary and Outlook
In essence, the current movement is typical of a market that rises quickly and naturally makes adjustments. The correction comes after historical price records, with investors safeguarding gains and exploring other opportunities (altcoins).
Despite the immediate volatility, many analysts view this as part of a natural cycle – a retaliation, but not necessarily the beginning of a prolonged decline.
🧭 What to Observe from Here On
• Critical BTC Support: the range of $115,000. If it falls below, the risks of further selling increase.
• Flows in ETFs and institutional: continuity of investments may sustain the market, while regulatory blockages may shake confidence.
• Movement of altcoins: if capital truly rotates to altcoins, this could protect the overall health of the crypto market.
Conclusion: today's decline is primarily driven by profit-taking, capital rotation, technical cleaning, and some regulatory noise. Although the moment is one of adjustment, many see it as an entry opportunity if support holds — especially in the medium term.
