In July 2025, Bitcoin, Ethereum, Dogecoin, and Shiba Inu faced significant price drops amid renewed geopolitical tensions affecting crypto markets.
Reasons for Price Decline in Cryptocurrencies
Bitcoin, Ethereum, Dogecoin, and Shiba Inu experienced significant price declines in early July. Geopolitical tensions and market-driven factors primarily attributed to this decline, with no major protocol updates reported for these cryptocurrencies.
Lack of Industry Leaders' Reactions
The absence of public statements from key figures like Vitalik Buterin and Billy Markus marks a cautious approach. Meanwhile, the Shiba Inu team has advised caution, focusing on technical resistance levels. "The prolonged compression below the 26 EMA suggests that selling pressure is diminishing and momentum is building, which could lead to a sudden and dramatic price movement in either direction once the pattern is resolved." — SHIB Team, Official Market Update, Shiba Inu.
Historical Parallels and Consequences
Intense selling pressures led to over $562 million in Bitcoin liquidations. This forced selling resulted in ripple effects across the entire crypto market, pushing prices downward. Meme coins, such as Dogecoin and Shiba Inu, faced declines of over 13% and 12%, respectively. Meanwhile, Bitcoin prices dropped sharply to around $108,000, impacting overall crypto market valuation. This decline mirrors past instances of panic sell-offs due to macro factors.
These events mirror historical trends observed during geopolitical or regulatory uncertainties that negatively impact the cryptocurrency market. Observers note potential aftershocks in DeFi and meme coins if the current trend continues.
