Crypto market falls 0.7% to $2.21 trillion on Friday. Investors reduced exposure across major digital assets.
Bitcoin slipped below $65,000. Ethereum, XRP, and Dogecoin also weakened. New Bitcoin ETF outflows quelled institutional demand.
Why crypto market falls today
BTC traded around $64,862. It fell below the psychologically significant $65,000 level. The decline took BTC to its 50-day EMA. That sits at approximately $65,145.
Bitcoin already fell 2.70% over two trading days. Buyer support weakened after the previous weekly recovery.
Ethereum extended its correction on Friday. It failed to hold above the $1,900 resistance. ETH fell to around $1,879. XRP experienced fresh selling at $1.14 rejection. Dogecoin also failed as traders reduced risky exposure.
Market sentiment deteriorated further. The CMC Fear and Greed Index fell to 37, signaling fear. About $40.1 million in Bitcoin liquidations occurred. Compelled sells accelerated the sell process. This increased volatility in leveraged cryptocurrency markets.
US-Iran war escalation fuels broader risk-off selling
Increasing US-Iran tensions created a risk-off atmosphere. Further strikes and unsuccessful diplomacy dimmed ceasefire hopes. Iran allegedly declined a proposal from Iraq’s prime minister. This raised the alarm of more military build-up.
Oil prices rose as investors evaluated disruptions. Brent crude surpassed $101 per barrel this morning and it is now trading around $98. This brought inflation fears to already wary markets. Higher energy costs may slow monetary easing. This strains risk-sensitive assets like cryptocurrencies.
US bond yields reached an 18-month peak. This added more pressure on digital assets.
Bitcoin ETF outflow ends seven-day inflow streak
Spot Bitcoin ETFs recorded $225 million in outflows on July 23. This ended seven consecutive days of inflows. Morgan Stanley’s MSBT made $5.01 million in inflows. Nevertheless, broader Bitcoin fund activity turned negative.
Spot Ethereum ETFs performed better. They recorded $26.32 million in net inflows. Fidelity FETH led with $14.93 million in inflows.
Regulatory uncertainty also affected sentiment. The CLARITY Act remains pending in the Senate. Elizabeth Warren criticized the Republican draft. She claimed it contains ethics loopholes. It would not stop President Trump from earning more crypto profits. Warren termed the proposal “dead on arrival.”
Key levels to watch
ETF outflows, geopolitical risk, and regulatory uncertainty continue to weigh on sentiment. Bitcoin needs to reclaim $65,000 before short-term sentiment can improve.