The cryptocurrency market faced a sharp decline after a week of gains due to several factors such as ETF delays, position liquidations, and macroeconomic conditions.
ETF Delays and Their Impact on Altcoins
Optimism around Solana ETFs cooled sharply after the SEC postponed rulings on three proposals until October 16, 2025. This decision left Solana traders frustrated. According to Bloomberg, the market had priced in a 95% chance of approval this month, making the delay a sentiment shock. As a result, SOL fell 4.4%, while ETH dominance climbed to 13.87% from 10.17% last month.
Liquidations and Their Consequences
The market's pullback intensified as overleveraged Bitcoin positions were wiped out. Data shows $162.9 million in BTC liquidations over 24 hours, with longs making up 92% of that total. Futures open interest rose 3.68% to $803.94 billion, leaving the market vulnerable to sharp moves. This profit-taking wave coincided with Bitcoin testing levels near its $124K BlackRock ETF peak.
Macroeconomic Factors and Their Influence
Adding to the pressure, U.S. July Producer Price Index data came in hotter than expected at 0.8% versus forecasts of 0.5%. Bitcoin briefly dipped below $118K, while correlation with the Nasdaq jumped, amplifying the selloff along with tech stocks. Rate-cut expectations shifted as Fed funds futures now show 55% odds of a September cut, down from 68% a week earlier, indicating a tilt toward defensive assets.
Despite today's pullback, the 30-day trend remains positive. Key support sits near $3.96 trillion. The next move may depend on whether institutions see this drop as a buying opportunity or if the inflation print foreshadows further pressure ahead of September’s CPI release.
