Key Notes
- Total crypto market cap dropped 5% to $3.78 trillion, and nearly $1 billion in liquidations occurred, mainly affecting short-term altcoin traders.
- While Bitcoin and Ethereum surged during Asian sessions, both the U.S.
- and Europe saw net selling, indicating profit-taking behavior.
- Experts, including Michael van de Poppe, view the current pullback as a healthy phase of profit-taking within a larger uptrend.
Cryptocurrency market liquidations in the last 24 hours have soared closer to $1 billion, led by a sharp altcoin correction, while Bitcoin BTC $119 346 24h volatility: 0.8% Market cap: $2.37 T Vol. 24h: $53.55 B continues to hold the line, staying steady at $118,000.
As a result, the crypto market made its first red candle for four consecutive days of upside.
Altcoins Lead Crypto Market Correction
The total cryptocurrency market capitalization declined by 5% this week, falling from nearly $4 trillion to $3.78 trillion. The altcoin market cap (TOTAL2) saw a steeper drop, plunging nearly 10% from $1.57 trillion to $1.4 trillion.
This correction comes amid discussions of altcoin season , teased by industry veterans like Binance founder Changpeng Zhao.
This sharper correction in altcoins compared to Bitcoin led to significant losses for short-term derivatives traders.
Data from Coinglass shows nearly $1 billion worth of positions were liquidated in the past 24 hours, affecting over 314,000 traders.
Crypto industry experts like Michael van de Poppe stated that he expects the volatility to remain high, as altcoins haven’t touched their previous all-time highs. “If you’re not going to be trading that volatility, you’ll be required to be patient. The altcoin bull market has just started,” added Poppe.
Anyways, corrections happen during upwards trends and those are fine. #Altcoins are going to go much higher. $ETH just went up 50% and is cooling down before the next leg upwards.
It's going to be great.
— Michaël van de Poppe (@CryptoMichNL) July 23, 2025
The crypto market is currently taking a breather as crypto investments skyrocketed last week, following US President Donald Trump’s signing of landmark crypto bills last week.
Crypto Profit Booking on the Rise?
A new report from 10x Research highlights that Asian trading hours were the primary catalyst behind the recent crypto rally.
On the other hand, there’s profit booking seen in the US and European markets.
Bitcoin recorded a 16% overall gain, but Asian market activity alone accounted for a 25% increase.
In contrast, European and U.S. sessions saw net selling, with declines of 6% and 3% respectively, likely driven by profit-taking. Even at $118K, BTC’s RSI stays above 75, suggesting an overbought condition.
PlanB, the founder of the stock-to-flow model, stated that this is common in a BTC bull run.
Ethereum ETH $3 750 24h volatility: 4.0% Market cap: $452.67 B Vol. 24h: $49.20 B showed a similar trend. ETH surged 63% over the past month, with Asian trading hours contributing a 96% gain.
Meanwhile, Europe and the U.S. saw selling pressure, with respective declines of 26% and 7% during the same period.
ETH Sees Profit Booking in Asian hours – Source: 10x Research
Today’s pullback in the altcoin market is widely viewed by analysts as a routine profit-taking phase rather than a signal of a broader downtrend. Most believe the underlying bullish trend remains intact.
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