3 key Reasons Behind Today’s Crypto Market Drop

The crypto market shed 1.02% in the past 24 hours, led by a sharp Bitcoin drop and fading altcoin interest.

A mix of whale sell-offs, leveraged liquidations, and macro headwinds dragged the sector lower after a strong July rally.

Whales dump $1.18B BTC, liquidations spike

Galaxy Digital reportedly offloaded 10,000 BTC worth $1.18 billion, triggering a swift 3% decline in Bitcoin’s price within one hour. The move unleashed a cascade of liquidations totaling $152 million—up 113% from the previous day—with long positions hit the hardest.

The sell-off also included a $370 million USDT withdrawal from exchanges, fueling fears of further offloading. Bitcoin dominance rose to 60.78% as capital exited altcoins in favor of relative safety.

On-chain watchers also flagged activity from dormant whale wallets, including a 14-year-old address moving 3,962 BTC, further unsettling sentiment.

ETH ETF inflows cool, rotation narrative weakens

Ethereum ETFs posted $2.4 billion in inflows over six days but showed signs of slowing late Thursday. Meanwhile, Bitcoin ETFs recorded $131 million in outflows earlier in the week, dampening risk appetite.

The ETH/BTC ratio slipped 0.3%, reflecting doubts about ETH’s ability to sustain recent gains. With staking unlocks and protocol-driven selling on the horizon, traders are questioning whether ETF momentum alone can support ETH prices.

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Tight macro correlation adds downside risk

Crypto’s correlation with Nasdaq stocks surged to 0.90—the highest since June. Following Nvidia’s earnings-driven tech pullback, digital assets mirrored the dip. The market now awaits Friday’s PCE inflation data, which could impact both stocks and crypto if inflation surprises to the upside.

Conclusion

Whale-driven volatility, ETF deceleration, and macro spillovers created a triple threat for crypto bulls. Despite a monthly rally of over 15%, the path forward looks murky.

BTC must hold $115,000 to avoid deeper correction, while ETH eyes $3,750 as key support. With $736 billion in open interest and rising dominance for Bitcoin, the next move could define August’s tone.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.