Why is crypto down today? BTC, ETH, XRP dip as market rally cools

A market-wide pullback has pushed several tokens into the red, with most trading below or testing key support levels.

According to crypto.news data on July 22, 2025, the crypto market has been trending lower over the past 24 hours. Bitcoin (BTC) trades slightly above $118,000, down 0.21% on the day. While modest, the decline mirrors a sharper 3.1% drop in Ethereum (ETH) during the same period.

Among the even bigger losers are HBAR (HBAR), XLM (XLM), and SUI (SUI), which posted losses reaching 6%, 4%, and 3% respectively, while XRP (XRP), BNB (BNB) joined the trend with more minor declines within the 1% range.

Smaller tokens felt heavier selling pressure, with PUMP (PUMP) sliding around 15% and PENGU (PENGU) dropping 7%. Memecoins were not spared either. Shiba Inu (SHIB) and Bonk (BONK) each logged losses of about 4%, while Pepe (PEPE) and Dogwifhat (WIF) slipped roughly 2% over the day.

Solana (SOL), however, bucked the trend with a 4% gain, briefly touching $200 to stand out as one of the day’s only winners.

The broad downturn has shaved about 5% off the total crypto market cap, pushing it back below the $4 trillion mark it recently hit. So what’s driving this pullback?

Why the crypto market is down today

The red across major tokens today looks less like panic and more like a breather. Investors are locking in profits after a sharp two-week rally that sent BTC, ETH, and several altcoins to fresh highs.

On-chain trackers show that large position holders are offloading portions of their holdings to secure gains, with notable whale transactions moving BTC and ETH back to exchanges. 

Technical indicators support the sentiment. The Crypto Fear & Greed Index has cooled but still sits in “greed,” suggesting that while enthusiasm remains, traders are becoming more cautious after the recent surge. 

Macro pressures add another layer. Spot Bitcoin ETFs have just ended their multi-day inflow streak, recording about $130 million in net outflows. This marked the funds’ first negative print in 12 days, a shift that often sparks short-term selling pressure.

Rising U.S. bond yields and ongoing uncertainty around the Fed’s next move are also weighing on risk appetite. Traders are watching every signal from policymakers, unsure if the Fed will cut rates soon or keep them elevated to fight inflation. This kind of hesitation often prompts investors to lock in profits, leading to short-term pullbacks.

Despite today’s slide, the broader uptrend remains intact. BTC is still up significantly month-over-month, while ETH continues to see strong interest. If these flows resume, the market could quickly find its footing.