The crypto market is currently on a downtrend, sparking bearish sentiment among market participants. This market crash has occurred due to several factors, which put crypto prices at risk of a further decline in the short term.

Why The Crypto Market Is Crashing

TradingView data shows that the total crypto market cap is down over 2% in the last 24 hours, dropping to $3.66 trillion. The market has shed around $71 billion of its value thanks to the decline.

The Bitcoin price has spearheaded this market crash, dropping to as low as $13,200 today from an intraday high of $117,700. Major altcoins, including Ethereum, XRP, Binance Coin, Solana, and Dogecoin, have also recorded significant declines.

The Market Is Facing Selling Pressure

The crypto market is currently facing significant selling pressure, which is one of the reasons why prices are down. CryptoQuant analyst Maartunn revealed in an X post that over the past 24 hours, 21,400 BTC has been sent to exchanges by Short-Term Holders, who are likely looking to offload their coins.

Over the past 24 hours, 21,400 $BTC were sent to exchanges at a loss by Short-Term Holders. pic.twitter.com/g8LbxyaRYK

— Maartunn (@JA_Maartun) August 1, 2025

Furthermore, this selling pressure is coming from the Bitcoin ETFs, which recorded net outflows of $114.83 million on July 31, according to SoSo Value data. These funds typically have to offload their coins to pay redemptions.

Whale Alert data also shows that whales have moved over 5,078 BTC today, likely in a bid to offload these coins. Among these is a wallet that has been dormant for over 12 years.

The profit taking currently overwhelming the crypto market was to be expected, considering the run that crypto prices have had over the past few weeks. The Bitcoin price, in particular, had rallied to a new all-time high (ATH) of $123,000 two weeks before the signing of the GENIUS Act into law.

Macro Factors Also Contributing To The Crypto Market Crash

Some macro factors are also contributing to the market crash. This includes the release of the July U.S. job data, which showed that nonfarm payrolls rose to 73,000, far below expectations of 147,000.

While this has raised the odds of a rate cut in September, it has also raised concerns about the health of the U.S. economy. As such, crypto market participants see the weak job data as being bearish for the market, although a rate cut could come out of this development.

Therefore, a rate cut amid a weakening labor market is unlikely to have the bullish impact that it would normally have under different circumstances. Moreover, there is also uncertainty in the market, especially following Donald Trump’s statement that the U.S. Bureau of Labor Statistics is manipulating the job report.

Meanwhile, the Trump tariffs also continue to linger. The White House just announced new tariffs on more than 60 countries, ranging from 10% to 50%, which will take effect from August 7. The tariffs are bearish for the crypto market, especially with the Fed predicting that they will cause inflation to trend higher in the coming months.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand.

Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing.

Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.