Why is Crypto Market Going Down Today (July 24)

The crypto market today fell 0.54% to $2.22 trillion as investors reduced exposure across major digital assets. Bitcoin slipped below $65,000, while Ethereum, XRP, and Dogecoin also weakened during Friday trading. 

New Bitcoin ETF outflows quelled institutional demand. The overall selling pressure in the cryptocurrency markets was heightened by regulatory uncertainty and growing US-Iran tensions in the previous session.

Crypto Market Falls as Bitcoin Slips Below $65K

Bitcoin price was trading around $64,799, after declining below the psychologically significant price of $65,000.00 in its Friday trading. The fall took BTC to its 50-day exponential moving average of approximately $65,145. Over the last two trading days, the Bitcoin had already gone down by 2.70%. The lack of support for buyers following the previous weekly recovery was tough.

Ethereum price extended its correction after failing to hold above the $1,900 resistance area. ETH fell to around $1,800, turning back gains made earlier in the week. XRP also experienced fresh selling upon rejection at around $1.14. Dogecoin also failed because traders were less exposed to risky assets.

Market sentiment also deteriorated as the Fear and Greed Index fell to 37, signaling fear. About 40.1 million dollars of Bitcoin liquidations contributed to the drop. Compelled sells resulted in a faster sell process and a higher volatility in leveraged cryptocurrency markets.

US-Iran War Escalation Fuels Broader Risk-Off Selling

Increasing tensions between the United States and the Iranian state posed a wider risk-off atmosphere in the global markets. 

Further strikes and unsuccessful diplomacy dimmed the prospects of an immediate ceasefire. Iran also allegedly declined a proposal whose message was passed via the prime minister of Iraq, raising the alarm of more military build-up. 

Bitcoin ETFs Lose $225 Million as Ether Funds Draw $26 Million

U.S. spot Bitcoin ETFs recorded net outflows of USD 225 million on July 23, while spot Ethereum ETFs attracted USD 26.32 million, according to SoSoValue. Morgan Stanley’s MSBT led Bitcoin fund inflows with USD 5.01… pic.twitter.com/AX0k8yLLfw

— Wu Blockchain (@WuBlockchain) July 24, 2026

Oil prices rose with investors evaluating the interruption of production and trade shipping routes. Brent crude surpassed $101 per barrel, and brought in an element of inflation fears in already wary financial markets. It may slow down the monetary easing and strain risk-sensitive assets, such as cryptocurrencies, with increased energy costs.

The bond yields in the United States were also at their peak in approximately 18 months. 

Bitcoin ETF Outflow Ends Seven-Day Institutional Inflow Streak

The institutional demand was weakened as spot Bitcoin ETFs registered outflows of $225 million on July 23. The withdrawals terminated seven inflow days and turned back the recent demand improvement. The MSBT of Morgan Stanley made inflows of $5.01 million and the Bitcoin fund activity of the wider scope was negative.

Bitcoin ETFs Lose $225 Million as Ether Funds Draw $26 Million

U.S. spot Bitcoin ETFs recorded net outflows of USD 225 million on July 23, while spot Ethereum ETFs attracted USD 26.32 million, according to SoSoValue. Morgan Stanley’s MSBT led Bitcoin fund inflows with USD 5.01… pic.twitter.com/AX0k8yLLfw

— Wu Blockchain (@WuBlockchain) July 24, 2026

Spot Ethereum ETFs worked out better and had net inflows of $26.32 million. Fidelity FETH was a leader of Ethereum products with $14.93 million in inflows.

There was also regulatory uncertainty that was affecting sentiment since the CLARITY Act was still pending in the Senate. The committee took the bill further, but it still needs to be completely approved by the Senate.

Elizabeth Warren criticized the Republican draft for containing ethics loopholes. She claimed it would not stop president Donald Trump to get additional crypto-profit. Warren termed the proposal as dead on arrival, thus making it more difficult to get a bipartisan support.

Warren Says CLARITY Act ‘Should Be Dead On Arrival’

Sen. Elizabeth Warren says the latest Senate GOP CLARITY Act draft would fail to stop President Donald Trump from earning more crypto profits.

She argued the bill leaves major ethics loopholes and should be “dead on arrival.”… pic.twitter.com/aEvEbcufEJ

— BSCN (@BSCNews) July 24, 2026

The withdrawal of ETF, geopolitical risk, and unregulated regulation continued to raise eyebrows among buyers. Bitcoin needs to win $65,000 before short-term sentiment will improve.