Cryptocurrencies such as Bitcoin, Ethereum, and Solana experience a decline, causing the overall crypto market to fall by $160 billion due to heavy selling and liquidations.
The global cryptocurrency market experienced a significant correction over the past 24 hours, resulting in over $500 million in liquidations and a drop in total market capitalization to around $3.7 trillion. This sharp decline was primarily due to a combination of macroeconomic pressures and market technical factors.
U.S. macroeconomic concerns played a significant role in the sell-off. Rising tariffs, persistent inflation, and a hawkish Federal Reserve stance created headwinds for risk assets, including cryptocurrencies, causing selling pressure and correction in prices.
Market technical dynamics also contributed to the correction. After an altcoin boom around mid-July 2025, a rapid correction followed, especially impacting Bitcoin and major altcoins like Ethereum and XRP. This induced a phase of sideways trading and price pullbacks.
Investors started rotating capital from Bitcoin dominance (which fell from around 65.1% to 61.1%) into altcoins and other assets, reinforcing volatility and contributing to the market cap dip from a recent high near $4 trillion to around $3.7 trillion.
The crypto market showed signs of cooling off from overbought RSI levels to a current 14-day RSI near 68, indicating a pause or brief consolidation phase before any potential next leg up. The correction was also likely fueled by Bitcoin's rapid gains, which had surged to an all-time high above $123K in mid-July 2025. Such rapid gains often lead to corrections as traders take profits and reassess positions.
Key liquidations occurred across various cryptocurrencies. Ethereum had liquidations of approximately $131.3 million, while SOL had liquidations of around $43 million. Bitcoin experienced the largest liquidations, amounting to around $160.7 million.
The biggest single liquidation order came from OKX's BTC-USDT-SWAP market, totaling $17.35 million. About $370 million worth of USDT was withdrawn from exchanges like OKX, Binance, and Bybit, potentially indicating a shift in investor sentiment.
Despite the declines, retail investor confidence remains surprisingly strong. Bitcoin ETF inflows support a long-term bullish trend. However, the global cryptocurrency market dropped to around $3.7 trillion on Friday, according to CoinGecko. The total liquidations in leveraged positions over the past 24 hours, according to CoinGlass, exceeded $721 million.
Notably, Galaxy Digital sold around 10,000 BTC worth approximately $1.18 billion, creating serious selling pressure in the crypto market. This sale, along with other market factors, contributed to the sharp correction observed in the cryptocurrency market.
In summary, the correction reflected typical market volatility influenced by external economic policies and internal trading patterns following recent large gains. The market's short-term performance is under pressure due to these factors, but the long-term outlook remains bullish for some investors.
Turkey's Finance Ministry is closely monitoring the global cryptocurrency market's correction, considering potential implications for investors in Turkiye. Given the substantial selling pressure and liquidations, there might be interest among Turkish investors to reallocate their assets from traditional markets to cryptocurrencies, especially if they view the recent correction as a buying opportunity. This increased interest in investing in cryptocurrencies could potentially drive further volatility in the market.
