3 min read
The cryptocurrency market has been rocked by a brutal sell-off, plummeting over 2% in the past 24 hours. TradingView data reveals the total market cap has dipped to $3.74 trillion, wiping out a staggering $40 billion from investor portfolios in a red-hot market shakeup.
Over the past 24 hours, 21,400 $BTC were sent to exchanges at a loss by Short-Term Holders. pic.twitter.com/g8LbxyaRYK
— Maartunn (@JA_Maartun) August 1, 2025
Leading the charge is Bitcoin, which slid from an intraday high near $120,000 to a low of approximately $114,200. Major altcoins (Ethereum, Solana, XRP, Binance Coin, and Dogecoin) have joined the fray as well, each suffering losses. Some of them even dipped by single-digit percentages in this unexpected downturn.
What’s Fueling the Crypto Markets Burnout?
In terms of PKR, here’s how Bitcoin behaves after volatility:
The plunge is fueled by a surge of selling pressure, with on-chain analytics hinting at significant activity. CryptoQuant reports large Bitcoin movements to exchanges, including a notable 917 BTC transfer to Coinbase, signaling traders gearing up to offload holdings.
This follows a pattern of profit-taking after Bitcoin’s all-time high of $123,218 on July 14, 2025, which had sparked widespread euphoria.
Adding to the chaos, Bitcoin ETFs saw net outflows, with estimates suggesting millions in liquidations on July 31, as institutional investors adjust positions. Whale Alert also flagged movements by large holders, including a dormant wallet reactivating, amplifying market jitters.
Profit-Taking After Bitcoin’s Record Rally
This sell-off isn’t a surprise to seasoned traders because just two weeks ago, Bitcoin soared to $123,218, driven by market optimism. Now, short-term investors are cashing out, triggering a classic correction in the volatile crypto landscape where rapid gains often lead to swift reversals.
Macro Pressures Ignite Bearish Flames in Crypto Markets
Beyond crypto’s internal dynamics, troubling macroeconomic signals are stoking the fire. U.S. job data for recent months has shown weakness, with analysts anticipating a potential Federal Reserve rate cut in September. While a rate cut might ease borrowing costs, it also hints at deeper economic concerns, spooking risk-asset investors, including those in crypto.
New Tariffs Threaten Global Stability
The White House’s announcement of sweeping tariffs has sent significant shockwaves through crypto markets. The Fed warns these could drive inflation higher, pushing investors away from risky assets like cryptocurrency toward safer havens.
Not to mention how traders are holding their breath on the Federal Reserve’s next move. The interest rate dilemma could also be pushing Bitcoin’s price predictions haywire. And all this while, altcoins grapple with their own momentum shifts.
Keep a check on all cryptocurrencies pitted against PKR on our cryptocurrency converter here.
