The cryptocurrency market shed almost 2.4% in the past 24 hours, pulling total capitalization down from $4.04 trillion to $3.95 trillion.
The decline comes just days after a solid +3.97% weekly gain, with a mix of regulatory setbacks, leveraged position shakeouts, and macroeconomic jitters driving the reversal.
ETF delays sap altcoin momentum
Optimism around Solana ETFs cooled sharply after the SEC postponed rulings on three proposals until October 16, 2025. The decision followed on the heels of Ethereum ETF approvals but left Solana traders frustrated.
According to Bloomberg, the market had priced in a 95% chance of approval this month, making the delay a sentiment shock. SOL fell 4.4%, while ETH dominance climbed to 13.87% from 10.17% last month. The Altcoin Season Index dipped to 45.
Long squeeze deepens the drop
The market’s pullback intensified as overleveraged Bitcoin positions were wiped out. Data shows $162.9 million in BTC liquidations over 24 hours, with longs making up 92% of that total. Futures open interest rose 3.68% to $803.94 billion, leaving the market vulnerable to sharp moves. The profit-taking wave coincided with Bitcoin testing levels near its $124K BlackRock ETF peak, pushing total market cap back toward the 23.6% Fibonacci retracement at $4.04T.
Inflation surprise spooks risk assets
Adding to the pressure, U.S. July Producer Price Index data came in hotter than expected at 0.8% versus forecasts of 0.5%. Bitcoin briefly dipped below $118K, while correlation with the Nasdaq jumped to 0.40 over 24 hours and 0.82 on the week – amplifying the selloff alongside tech stocks. Rate-cut expectations shifted as Fed funds futures now show 55% odds of a September cut, down from 68% a week earlier. Gold rose 0.83%, suggesting a tilt toward defensive assets.
Outlook
Despite today’s pullback, the 30-day trend remains positive (+7.81%). Key support sits near $3.96 trillion (38.2% Fib level). The next move may depend on whether institutions see this drop as a buying opportunity or if the inflation print foreshadows further pressure ahead of September’s CPI release.
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Source: https://coindoo.com/top-3-reasons-the-crypto-market-slipped-after-recent-gains/