Why Is Crypto Down Today? – July 2, 2025

The crypto market is down today. About 80 of the top 100 coins per market cap have dropped over the past 24 hours. Also, the cryptocurrency market capitalization has decreased by 2.3% to $3.4 trillion. The total crypto trading volume is at $85.7 billion, decreasing over the past few days.

TLDR:

Only one of the top 10 coins per market cap has seen its price rise today, while two others are unchanged.

Bitcoin (BTC) stands as one of the coins whose price has not changed over the past day. It currently sits at $106,881.

At the same time, Ethereum (ETH) has decreased by 0.5%, currently changing hands at $2,445.

Tron (TRX) is the only coin that appreciated today, rising 0.9% to the price of $0.2812.

The highest decrease is 1.3% by XRP (XRP), now standing at $2.19.

Additionally, 18 of the top 100 coins saw their prices increase over the past day. Pudgy Penguins (PENGU) appreciated the most, with the only double-digit rise in the category. It’s up 11.7% to $0.01624.

Algorand (ALGO) and Tokenize Xchange (TKX) dropped the most today: 6.2% and 5% to $0.1753 and $23.57, respectively.

Speaking of Pudgy Penguins, the team said on Tuesday that they are about to drop the Pudgy Party mobile game. It’s developed by Mythical Games.

For those not aware, @pudgypenguins is about to drop a mobile game called Pudgy Party.

Gameplay looks fun AF, think Mario Party meets Fall Guys. I’ve talked to a couple people who’ve played (it’s testing in select regions) and they said it’s incredible.

Built by Mythical Games,… pic.twitter.com/J2tDuoKerd

Also, late last month, Canary Capital, a cryptocurrency asset trading and management firm, filed for the Canary PENGU ETF in the US.

The Canary PENGU ETF, the first and only spot pudgy penguin filing, just got its 19b-4 filing via CBOE. On clock soon. pic.twitter.com/852jIPtuvF

Meanwhile, the European Central Bank (ECB) Governing Council approved a two-track plan on Tuesday, which will utilise central bank funds for distributed ledger technology (DLT) transactions.

Petr Kozyakov, co-founder and CEO at payment infrastructure platform Mercuryo, commented that “a summer lull has seemingly taken hold across the cryptocurrency market as sentiment edges towards the bearish side.”

Nonetheless, Bitcoin still remains near its all-time high as participants await the release of key macroeconomic data in the US. “The narrative of robust institutional demand, which has so defined this current market cycle, remains in place.”

Meanwhile, altcoins are trading well below previous highs, with Ethereum and Solana recording year-to-date falls of 27% and 23%, respectively, says Kozyakov.

As for stablecoins, that safe harbour is “enticing for some retail investors as they remain on the sidelines, awaiting a clear market move,” the CEO concludes.

Moreover, blockchain data platform Glassnode noted that profit-taking has increased on Bitcoin, rising to $2.46 billion on Monday, but that we’re still seeing below-average numbers overall.

Profit-taking is ramping up on the #Bitcoin network again. Yesterday, $BTC realized profits hit $2.46B, while the 7D SMA climbed to $1.52B. That’s above the YTD average of $1.14B, but still well below the ~$4-5B peaks (7D SMA) seen in Nov–Dec 2024. pic.twitter.com/hGnQHyEI2c

Meanwhile, Glassnode and crypto exchange Bybit published a report on Tuesday, in light of the massive Bybit hack back in February, stating that it “highlights a significant shift in crypto market structure: an increasing capacity to absorb and rebound from large-scale disruptions.”

Per the two companies, “if such resilience becomes the norm, it may pave the way for greater investor confidence and long-term maturity across the broader crypto ecosystem.”

At the time of writing, BTC trades at $106,881. At one point, it fell from the intraday high of $107,139 to the daily low of $105,402, before rising back up.

The coin may attempt to retest the $107,832 level, followed by $108,979. Current support levels stand at $105,431 and $104,338.

At the same time, Ethereum is currently trading at $2,460. The coin hit an intraday high of $2,465 before dropping to $2,395 and rising to the current price.

Additionally, the crypto market sentiment still stands in neutral territory, but it fell to its lowest point in the past week. The Fear and Greed Index fell from 50 yesterday to 46 today. Investors continue to be cautious, but the fear is slowly moving. Further drops may present a buying opportunity.

Moreover, on 1 July, US BTC spot exchange-traded funds (ETFs) broke their 15-day streak of positive flows with $342.25 million in outflows. Fidelity and Grayscale lead the list with outflows of $172.73 million and $119.51 million, respectively.

However, US ETH ETFs recorded inflows of $40.68 million. BlackRock and Grayscale took in $54.84 million and $9.96 million, while Fidelity lost $24.11 million in the same period.

The US Securities and Exchange Commission (SEC)’s Division of Corporation Finance published a notice on Tuesday to offer clearer guidance for ETF issuers. It covers how net asset value is calculated, how service providers are selected, detailed descriptions of custody practices, potential conflicts of interest, and more.

Yes, this is what everyone wants, what makes sense and what we think will happen and why we so bullish (95% on most of the coins) approval. Q is what will the standards be. We think they'll likely be loose enough where the vast majority of Top 50 coins would be ok to be ETF-ized. https://t.co/1AUZOmpe1O

Meanwhile, the Ethereum Foundation transferred $32 million worth of ETH to multisig wallets over several days. While the Foundation has faced community backlash throughout 2025 for selling ETH, Vitalik Buterin defended this approach, noting regulatory concerns about staking large amounts of ETH.

The #EthereumFoundation has been transferring 1,000 $ETH($2.46M) daily to multisig wallet 0xc061 recently, totaling 13,000 $ETH($32M) so far.https://t.co/IN91jVuDbk pic.twitter.com/LeXJRpVXbt

1. Why did crypto move against stocks today?

The crypto market has decreased over the past 24 hours, while the US stock market saw a mixed situation on Tuesday. For example, the S&P 500 fell by 0.11% and the Nasdaq-100 went down by 0.89%, while the Dow Jones Industrial Average rose by 0.91%. Stocks are cooling off after three days of gains amid optimism surrounding potential trade and tariff deals, as well as the US Federal Reserve cutting interest rates in the coming months.

2. Is this dip sustainable?

The market has entered a firm consolidation period. While drops are possible, so are further increases. Macro elements may push crypto prices either way.

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