Crypto Market sees a new sauce on July 1, 2025: What drives the decline and is a rebound near?
The cryptocurrency market opened Julio with a cautious note, witnessing a fall of almost 2% in the capitalization of total market, which is now at approximately $ 3.26 billion, according to Coinmarketcap. In spite of the recession, the 24 -hour negotiation volume increased by more than 7% to reach $ 103.76 billion, indicating a combination of panic sale, forced settlements and aggressive purchase of sauce among merchants who sail through volatility.
While experienced investors are familiar with rapid Crypto fluctuations, the question in many minds is clear: Why is the encryption market down today? Next, we break down the three critical reasons that drive market correction and examine whether the recovery signs are on the horizon.
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| Source: Coinglás data |
1. Bitcoin settlements hit leverage merchants, triggering a chain reaction
Bitcoin, the stimulus of the cryptographic market, leads the decrease, which quotes around $ 106,025 at the time of publication, 1.58% in the last 24 hours. Coinglass data reveal that leverage merchants had the worst part of the correction:
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BTC Long Liquidations: $ 5.08 million
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BTC Short settlements: $ 128,000
The liquidation data indicates that the bullish merchants were very leveraged, waiting for Bitcoin to break in early July. However, when the price fell, its positions were automatically settled, amplifying the downward impulse and activating a massive waterfall sale that knocked down the broader cryptography market.
Analysts point out that the liquidation events of this scale are not uncommon in the cryptographic panorama, but the speed and volume seen today suggest aggressive positioning by retail and institutional merchants trying to capitalize on early upward trends.
2.
While market movements often depend on macroeconomic indicators, political agitation can harm the feeling of investors equally, and today’s hall is no exception. The United States Senate is preparing to vote on the $ 4.5 billion proposed by former President Donald Trump “a great bill.” The bill, if approved, would introduce radical tax cuts and greater military spending, but at the cost of adding more than $ 3 billion to the national debt.
Tesla and the CEO of Spacex, Elon Musk, went to social networks to criticize the bill, warning that any legislator who supports him could face electoral consequences, intensifying the already tense political panorama. This public dispute between two high profile figures has created an atmosphere of uncertainty in financial markets, which drives investors reluctant to the risk to step back in the midst of concerns about future economic policies and fiscal stability.
For the cryptography market, known for its sensitivity to macropolitical developments, Trump-Musk confrontation is a new factor that adds volatility, since investors expect clarity on possible economic impacts that could influence the liquidity and risk appetite among digital assets.
3. History of Finance Founders Backed with Daostack raises confidence concerns on web3
A newer but significant reason that contributes to today’s recession implies Backed FinanceThe company behind the Xstocks tokenized shares platform. Recent reports have emerged that stressed that its three founders were previously associated with Daostack, a web3 project that raised $ 30 million during its peak, but collapsed in 2022 due to internal disputes and alleged poor management.
As Xstocks operates within the real -world sector based in Blockchain (RWAS), revelation has caused concerns about governance and transparency within defi and token projects. Investors distrust the past failures that are repeated in the evolution RWA ecosystem, adding another caution layer that is undulating through assets related to Defi today.
The incident underlines a broader challenge within web3 and defi: the need for responsibility and transparency consisting of promoting trust between institutional and retail investors equally.
Mercado’s feeling: greed persists in the midst of immersion
Despite the downward price movements, the Cryptographic fear and greed index He remains at 64, indicating a continuous feeling of “greed” within the market. In general, this reading would be aligned with the bullish impulse, but the current fall shows that the underlying greed can often precede acute corrections, particularly in a highly leveraged environment.
However, for many merchants, this indicator of persistent greed, together with the increase in commercial volume, points out that the DIP could represent a typical opportunity of “purchase of the DIP” instead of the beginning of a prolonged recession.
Long -term perspective: Is this other correction?
For long -term investors, the current correction is consistent with the cyclical behavior of the cryptographic market, characterized by rapid waves followed by equally rapid setbacks. Although today’s decline is remarkable, it is important to place it within the broader context of the general path of the crypt in 2025.
Bitcoin remains well above the $ 100,000 brand, and Ethereum continues to operate strongly in the middle of its Capa-2 and rethinking expansions. Meanwhile, other Altcoins with strong foundations, particularly those within the RWA and Defi sectors, continue to show resilience, despite the short -term volatility driven by the news cycles and the liquidation events.
Key control:
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Bitcoin leverage liquidation: The main driver of today’s fall, emphasizing the risks associated with the positions that are too leverage.
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Political uncertainty: Trump’s spirit of the proposed bill is creating caution among investors, impacting risk appetite.
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Web3 governance incess: The previous ties of the founders of Finance de Finance with Daostack highlight the need for transparency in Defi projects.
What investors should see below
With commercial climbing volumes and the feeling of the remaining market in “greed”, investors must closely monitor:
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Possible political results surrounding Trump’s bill and any subsequent economic measure.
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Bitcoin prices stability above key support levels, particularly around the $ 100,000 brand.
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Institutional movements in the market, since large purchases could indicate the beginning of a rebound.
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The signals of transparency and governance of the RWA and Defi projects, which could restore confidence in these sectors.
Final thoughts: extended opportunity or correction?
While the current decline has caught the attention of cryptographic investors worldwide, it is far from unprecedented in a market known for its volatility. For those with a long -term perspective, corrections often serve as opportunities to accumulate assets at lower prices, provided that the underlying foundations of the projects remain strong.
Cryptographic market resilience has been repeatedly demonstrated, bouncing larger corrections driven by factors of the macroeconomic and internal industry. As the mature industry, volatility can persist, but remains paired with a significant growth potential for investors who navigate it strategically.
For now, the combination of the increase in commercial volume, the persistent feeling of greed and the ongoing interest of the market suggest that, although caution is justified, a large -scale collapse seems unlikely, and a recovery could follow if the key resistance and support levels remain in the next few days.
Writer
@Ellena
Ellena is an experienced cryptographic writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides information about the latest trends and innovations in the currency space.
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