As July nears its end, the overall trajectory of the month concludes as bullish; however, the crypto market crashes remain evident, including today. Over the last few days, the volatility of the digital assets remained high, as noted in their price performance. Interestingly, the sentiments remain bullish, but the prices decline. Why? Let’s discuss.
Crypto Market Faces $40 Billion Crash
The crypto market heatmap is again in red, consequently, for the second day, showcasing the investors’ cautious approach. This is due to the multiple macro and psychological barriers, resulting in the removal of $40 billion from the total market cap, currently at $3.88 trillion.
Along with that, the trading volume is also down 7%, and the BONK, FLOKI, and other meme coins are the main victims. Notably, Bitcoin, Ethereum, XRP, and other altcoins are also facing a downturn, but CoinMarketCap’s fear and greed index is at 63 (GREED), signaling the momentum is temporary.
- Source: CoinMarketCap, Crypto Heatmap
Why is the Crypto Market Crashing?
July 30 can be written in the history of the crypto industry, as the White House crypto policy report is released today. It is a major milestone as it focuses on creating a clear regulatory framework. However, it failed to mention the creation of the U.S. Strategic Bitcoin Reserve, disappointing investors.
Notably, investors have been cautious of the event as there were many speculations, resulting in the digital assets’ performance tumbling even before the report’s release. In addition to that, the FOMC meeting begins today, which could make or break the cryptocurrency market.
the fed will not cut rates today
instead of listening to ct…… just check fedwatch pic.twitter.com/cMh0QSPOgv
— kook 🏝️ (@KookCapitalLLC) July 30, 2025
Experts predict unchanged rate cuts, resulting in high volatility. A crypto whale has even bet $1.3M on the Fed’s decision, while others await results. Delay in Bitcoin, Solana, and other crypto ETFs is also influencing the market’s trajectory.
Despite reaching an all-time high, BTC is consolidating, failing to overcome the $120k psychological resistance. Even dormant Bitcoin whales are awakening to sell, signaling a shift in the market. Although this is momentary, the impact is visible today.
A Bitcoin OG transferred 343 $BTC($40.52M) out 18 hours ago after 12 years of dormancy, with 130.77 $BTC($15.45M) deposited to #Kraken.
This OG received 343 $BTC($29.6K at the time) 12 years ago, when the $BTC price was $86.
That’s a 1,368x return!https://t.co/lS5fox8vZQ pic.twitter.com/BxUoZ91Cf8
— Lookonchain (@lookonchain) July 29, 2025
BNB and the rest of the altcoins are also facing a correction after earlier gains. The hype of Altcoin Season is still looming, but the odds remain low, signaling fatigue in investor enthusiasm.
Lastly, Trump’s imposition of a 25% tariff on India, geopolitical tension in Asia, and other minor factors are adding to the crypto market crash.
Frequently Asked Questions (FAQs)
The report missed the discussion on the U.S. Strategic Bitcoin Reserve, disappointing investors who were optimistically waiting for it.
Dormant Bitcoin whales are awakening and selling their BTC, influencing the broader market downtrend.
The market is crashing due to high volatility amid macro and psychological events, but investors accept them as temporary and are keeping a bullish stance.
Pooja Khardia
Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section.
Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights.
Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry.
When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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