Why Is Crypto Going Down? Bitcoin Falls to $117K Today, Dragging XRP, Dogecoin and Ethereum Prices Lower
Cryptocurrency markets experienced substantial volatility on Wednesday, July 15, 2025, with Bitcoin (BTC) costs falling below $117,000 after reaching a record high of $123,000. The world’s biggest cryptocurrency presently trades at roughly $117,550, representing a 5% decrease from its Monday peak as investors engaged in profit-taking activities following the historical rally. Ethereum (ETH) has also dealt with selling pressure, trading below $3,000, while XRP experienced a 5% drop from $3.02 to $2.78. Dogecoin became the worst performer among major cryptocurrencies, plunging 8% and leading market losses.
Why is the crypto decreasing today? The crypto market correction follows one of the most significant profit-realization events of the year, with investors collectively realizing $3.5 billion in profits over the previous 24 hours. This massive sell-off has created substantial market volatility and raised questions about the sustainability of recent gains.
Bitcoin Rate Retreats from Record High Amid Whale Activity
Bitcoin’s recent rise to $123,000 on Monday quickly reversed as long-term holders cashed out significant positions. According to Glassnode data, long-term holders, defined as those who bought more than 155 days ago, represented 56% of the total profit-taking, realizing $1.96 billion in gains.
The cryptocurrency’s rapid climb from $108,000 to $123,000 created a notable supply gap between $110,000 and $116,000, leaving the marketplace susceptible to sharp price movements in either direction. This technical weakness has contributed to the current volatility as traders navigate the lack of established support levels in this range.
Whale activity on Binance has surged significantly following Bitcoin’s all-time highs. The Binance Whale Activity Rating shows increased large-holder behavior, with whales depositing roughly 1,800 BTC onto the exchange on Monday. Transactions over $1 million accounted for more than 35% of total Bitcoin inflows to the exchange, indicating focused selling pressure from major players.
CryptoQuant analyst Crazzyblockk noted that this rise in deposits suggests ‘massive investors are either preparing to secure gains after the historic run to $122,000 or are preparing to make use of Binance’s deep liquidity to hedge or open new positions amidst peak volatility’.
Dogecoin Leads Altcoin Losses with 10% Plunge
Dogecoin experienced the most extreme decline among major cryptocurrencies, dropping 8% from $0.21 to $0.18. The meme-inspired token saw considerable selling pressure during two key trading windows, with volume spikes of 735.09M and 704.60M crushing the 24-hour average of 415.48M.
As shown on the technical chart below, local resistance has stopped more gains, and the price might now be heading back toward the downward channel that has been forming since May. However, institutional activity appeared on both sides of the move, suggesting strategic capital flows instead of retail-driven volatility.
The selloff coincided with rising anxiety over delays in potential crypto ETF approvals and increased U.S. regulatory discussions around centralized exchanges.
XRP Faces Resistance at $3 Ahead of ETF Launch
XRP tumbled 8% from $3.02 to $2.78 between July 14 and July 15, encountering strong resistance at the $3.00 level. The decline occurred regardless of an initial morning rally that saw coordinated buying push the token to $3.02 before systematic profit-taking set in.
The selloff aligns with institutional de-risking ahead of the ProShares XRP Futures ETF launch scheduled for July 18. Corporate treasuries are rebalancing exposure amid regulatory uncertainty, with the SEC’s unresolved digital asset framework continuing to dominate institutional risk models.
Based on my technical analysis, the price may currently be consolidating between the previously mentioned $3 level and the support zone defined by the May highs, around $2.59-$2.65.
Ethereum Price Stops Below $3K Mark
During Monday’s session, Ethereum tested its highest levels since February, briefly approaching $3,100. However, most of that movement was erased before the session closed, with the second-largest cryptocurrency by market capitalization retreating to the psychological level of $3,000.
Profit-taking across all major cryptocurrencies on Tuesday also pushed Ethereum lower. At the time of writing, it is down 1.3%, trading just below technical resistance at $2,975. The cryptocurrency managed to break out of the consolidation range observed from May through mid-July; however, there is now a renewed risk that the price could fall back below $2,820 – the upper boundary of that previous sideways pattern.
The lower end of that range sits near $2,200, corresponding to the June lows. That level might mark a potential end to a deeper correction, should one occur. For now, however, there is no clear indicator of such a move. As usual, much will depend on what Bitcoin does next.
Why is Crypto Going Down? 3 Key Reasons
Massive Liquidations Amplify Market Downturn: The cryptocurrency market saw one of its heaviest liquidation events since April, with over $675 million erased in 24 hours. Long traders bore the brunt of the damage, facing liquidations exceeding $406 million, while short-side losses contributed an additional $269 million to the total figure.
Bitcoin longs suffered the most significant impact with over $333 million in forced closures, followed by Ethereum at $113 million and XRP at $36 million. Despite Bitcoin trading near record highs, elevated funding rates have made leveraged bets increasingly expensive, triggering caution among traders.
QCP Capital noted in a client update that ‘financing rates rise, and the memory of February’s $2 billion liquidation event still lingers’.
Federal Reserve Policy and Macroeconomic Pressures: The cryptocurrency market’s volatility occurs against a backdrop of macroeconomic uncertainty and Federal Reserve policy speculation. The dollar held near a three-week high as traders awaited U.S. inflation data that could offer clues about the path for monetary policy.
Fed Chair Powell has indicated expectations for inflation to rise throughout the summer due to tariffs, which might keep the central bank on hold until later in the year. Economists surveyed by Reuters expect headline inflation to increase to 2.7% annually, up from 2.4% the previous month, while core inflation is forecasted to rise to 3.0% from 2.8%.
Technical Analysis Points to Potential Further Declines: Technical indicators suggest Bitcoin faces critical support levels that might determine its near-term direction. The cryptocurrency has created a CME futures gap between $114,380 and $115,630, which historically tends to get ‘filled’ through price action.
Cryptoanalyst Mikybull Crypto suggested that Bitcoin will ‘likely fill up the CME gap during the CPI release and continue the rally up,’ while MN Capital founder Michael van de Pope indicated the possibility of a deeper correction toward $108,000.
How High Can Crypto Go? Market Price Predictions
Despite the current weakness, analysts remain cautiously optimistic about cryptocurrency markets’ longer-term prospects. Bitget’s Ryan Lee noted that ‘the road to $150,000 by Q3 looks increasingly possible, powered by ETF inflows, supply constraints, and macro tailwinds like a weakening dollar and possible Fed cuts’.
Bitcoin Price Prediction Table
| Source/Analyst | Price Target | Timeframe | Key Drivers |
|---|---|---|---|
| Standard Chartered | $200,000 | End of 2025 | Institutional adoption, macroeconomic conditions |
| Cathie Wood (Ark Invest) | $1,000,000 | Within 5 years | Limited supply, global store of value adoption |
| Bitwise | $230,000 | Current ‘fair value’ | US fiscal instability, shortage, sovereign debt issues |
| Bitfinex | $120,000-$125,000 | Mid-2025 | Favorable macroeconomic developments |
| Tom Lee (Fundstrat) | $150,000-$250,000 | End of 2025 | Supply-demand imbalances, global liquidity |
| VanEck | $180,000 | 2025 (cycle peak) | Dual-peak cycle pattern |
The cryptocurrency market’s resilience will likely depend on its ability to navigate ongoing macroeconomic pressures while maintaining institutional interest.
