Why Are Crypto Prices Falling Today, July 28?

The crypto market fell 3.24% to $2.17 trillion on July 28 as investors reduced exposure before the Federal Reserve decision. Bitcoin price fell to less than $64,000, and Ethereum, XRP, and Solana experienced even greater losses. Forced liquidations and ETF outflows further weakened Crypto prices during Tuesday’s volatile trading session.

Crypto Prices Fall as Global Risk-Off Sentiment Hits Digital Assets

The price of cryptocurrencies declined as investors exited risk-sensitive investments due to deteriorating global markets. Bitcoin price was trading around $63,460 with a daily and a weekly loss of 2.9%.

Ethereum price fell 4.25% to $1,885, while XRP price declined 4.59% to $1.05. Solana price dropped 4% to $73.35, and BNB  price slipped 1.75% to $564.67.

The South Korean KOSPI plummeted severely, raising eyebrows in the international markets. Technology and semiconductor shares led the sell-off, encouraging investors to seek safer assets.

Fear” sentiment prevailed in the market, according to the Crypto Fear & Greed Index.

An increase in Treasury yields also decreased demand on speculative investments. Crypto tends to track technology stocks when financial conditions and risk appetite are constrained.

Leading cryptocurrencies fell sharply on Tuesday as investors weighed developments around the Clarity Act and a pause in U.S.–Iran hostilities.

Fed Policy Concerns and Long Liquidations Deepen the Market Sell-Off

The Federal Reserve announced its policy on July 29, and investors liquidated before that announcement. Markets broadly expect officials to leave interest rates unchanged.

However, traders remain concerned that policymakers could deliver a hawkish message. The constant inflation, increasing yields, and the geopolitical risks can justify the restrictive policy language.

The fall of Bitcoin gained momentum as leveraged long positions were liquidated. The long liquidations of Bitcoins were approximately at 132.18 million in the last 24 hours.

The total crypto liquidation is over $670 million with an estimated $533 million of bullish liquidation. These compelled shutdowns aggravated losses in already slim trading conditions.

Volume in derivatives increased 84.58, showing more selling and quick positioning. Bitcoin open interest also fell nearly 2% as traders reduced leverage.

Bitcoin now faces important support near $63,000. The idea to hold that area may enable consolidation in the run-up to the Federal Reserve statement.

A resounding lower than support could prolong loss. Nonetheless, Binance traders were still net bullish despite the wider correction.

Bitcoin ETF Outflows Add Further Pressure Ahead of the Fed Decision

On July 27, net outflows were $11.64 million for spot Bitcoin exchange-traded funds. The biggest outflows occurred with BlackRock’s IBIT account, which sold $8.82 million worth of shares.

The most recent exit comes after a combined withdrawal of over $465 million on July 23 and on July 24. The seven-session inflow streak came to an end with those redemptions.

Meanwhile, $9.23 million went into spot Ethereum ETFs. BlackRock’s ETHA led the group with $11.75 million in new capital.

Bitcoin ETFs Post $11.6 Million Outflow as Ether Funds Add $9.2 Million

U.S. spot Bitcoin ETFs recorded net outflows of USD 11.64 million on July 27, according to SoSoValue, with BlackRock’s IBIT posting the largest single-fund outflow at USD 8.82 million. Spot Ethereum ETFs… pic.twitter.com/XSe7OqjbWX

— Wu Blockchain (@WuBlockchain) July 28, 2026

Overall, the mixed ETF activity demonstrated less interest in Bitcoin prior to the Federal Reserve outcome. Investors also continued to watch for activity around the CLARITY Act, which has been languishing in Congress.

The cryptocurrency market could continue to experience volatility until policy makers get a clearer view of their stance on cryptocurrencies. The market’s next short-term move may be determined by Bitcoin’s reaction at $63,000.