The cryptocurrency market experienced a dramatic session of turbulence today as Bitcoin retreated sharply from its newly-minted all-time high, triggering a cascade of liquidations and exposing the market’s current volatility. The digital asset fell 1.4% to trade around $118,176 after briefly touching a record $123,000.
The sharp downturn was fueled by a combination of massive profit-taking and significant on-chain activity. A staggering $3.5 billion was liquidated across the market as prices tumbled. Adding to the drama, a long-dormant Bitcoin whale, inactive since 2011, moved over 40,000 BTC—worth approximately $4.7 billion—to the institutional trading desk at Galaxy Digital, a move analysts suggest was timed to capitalize on the recent price peak.
This correction isn’t happening in a vacuum. The market is also reacting to macroeconomic pressures, including a surprise uptick in US inflation data for June. Simultaneously, a legislative stalemate in the US Congress over key crypto-regulation bills has injected a dose of uncertainty, creating a headwind for the sector’s largest digital assets.
Altcoins on Divergent Paths
While Bitcoin’s correction sent ripples across the market, major altcoins forged their own paths, painting a mixed picture of resilience and pressure.
• Ethereum (ETH) emerged as a leader in the recovery, climbing 4.2% to $3,140. The network is showing notable strength, buoyed by strong institutional interest and continued anticipation surrounding a potential spot staking ETF, which keeps investor optimism high despite the recent market chop.
• Solana (SOL) maintained its positive momentum, rising 1.5% to $164.71. The high-performance blockchain is currently testing resistance near the $168 mark, a key technical level that traders are watching closely.
• XRP remains under pressure, slipping 0.79% to $2.93. With a futures ETF launch on the horizon, the asset is experiencing heightened volatility and is struggling to overcome a significant resistance barrier at the $3.00 psychological level.
What to Watch Next
The current market is defined by a classic, healthy correction following a powerful rally. While the short-term outlook is cautious, the underlying factors that drove the recent highs—namely increasing institutional adoption and the mainstreaming of crypto financial products—remain firmly in place. For now, all eyes are on Washington for regulatory clarity and on the on-chain data for the next major whale move.
