- Bitcoin faces increasing sell pressure, dropping near $95,000 support on Wednesday.
- Top 5 altcoins struggle while XRP leads with over 2% daily gains.
- Crypto market capitalization sheds 7% in 24 hours, falling to $3.49 trillion.
- Experts suggest BTC may consolidate further before demand returns.
Bitcoin (BTC) briefly dipped below $95,000 on Wednesday before recovering. This pullback triggered a broader market correction, with most major altcoins declining except XRP, which maintained its recent upward momentum with nearly 2% daily growth.
Ethereum (ETH), Binance Coin (BNB), and Solana (SOL) saw minor retracements, while BTC lost nearly 2% of its value.
Is This the End of Bitcoin's Bull Run?
Bitcoin's 2024 rally was fueled by institutional inflows and US spot ETF approvals. While institutional interest gradually returns, macroeconomic factors and USD strength now influence 2025's BTC price trends.
David Morrison, Senior Market Analyst at Trade Nation, told FXStreet:
"Bitcoin has been somewhat disappointing. After breaking $100,000 on Monday afternoon, it fell back below this level within 24 hours. Selling pressure continues this morning, returning to last Thursday's levels when it was building momentum."
"The daily MACD has pulled back sharply from November/December 'overbought' levels. It might need to find a bottom and consolidate further before buyers return," he added.
Ilya Volkov, CEO of YouHodler, holds a bearish outlook for 2025:
"Last year's growth was primarily driven by ETF launches sparking retail demand. In 2025, we anticipate global equity corrections potentially impacting crypto ETFs and valuations. The S&P 500's performance will be key."
Crypto Market Cap Shrinks 7%: Where Do We Go From Here?
As of Wednesday, total market capitalization fell to $3.49 trillion, with traders concerned about ecosystem health and altcoin prospects. Bitcoin's dominance hovers near 57% across weekly/daily timeframes.
TradingView charts show tentative recovery signs in altcoin market cap, though still far below 2021's $1.71 trillion peak. Until this metric improves, Bitcoin's 2025 outlook remains uncertain.
Key Developments:
- BTC spot exchange volumes dropped 15% monthly (K33 Research)
- USD/JPY fell 9% in H1 2025
- Strong US June jobs data reduced Fed rate cut expectations
- 10-year Treasury yields rose to 4.35%
- Major US stock indices hit record highs
FAQ Section
Q: Is Bitcoin's bull run over?
A: While facing short-term pressure, Bitcoin may consolidate before potential renewed institutional demand returns to the market.
Q: Why are altcoins struggling?
A: Reduced risk appetite and liquidity shifts toward Bitcoin create headwinds for altcoin performance.
Q: What key indicators should traders watch?
A: Monitor ETF flows, USD strength, S&P 500 correlations, and the total crypto market cap excluding Bitcoin.