Why is Crypto Market Going Down Today? XRP Price Dips 7%, BTC and ETH Follow

The crypto market saw a dip over the last 24 hours, with the total market cap falling by 1.23% to $3.66 trillion. Bitcoin slipped below the $114,000 level and is currently trading around $113,715. Bitcoin, Ethereum, and several top altcoins had entered overbought zones recently, along with traditional markets like the S&P 500 and Nasdaq.

Bitcoin’s RSI, a key market indicator, has cooled to around 40, hinting that the rally needed a pause. Altcoins were hit even harder, with several top performers from last week reversing gains. Ethereum dropped over 2.70% to trade near $3,434. XRP recorded a 6.70% drop, while Binance Coin (BNB) fell by 2.97%. Solana (SOL) also slid 2.42%, and Cardano (ADA) dipped 1.12%. Dogecoin (DOGE) lost 3.39%, and SUI declined by 3.41%.

This correction is seen as a healthy reset rather than a sign of weakness. The broader altcoin market, measured by the “Total 3” index which excludes Bitcoin, Ethereum, and stablecoins, had also become overheated and is now cooling down. Important support levels for Bitcoin remain strong between $110,000 and $106,000, which could lead to a bounce later this month.

At the same time, there’s been a strong push behind crypto investment. In July alone, U.S. crypto ETFs saw record inflows of $12.8 billion, with both Bitcoin and Ethereum receiving interest. On-chain data also shows wallets holding 10 or more BTC have continued adding to their positions, showing steady long-term confidence.

Additionally, updated U.S. job numbers came in weaker than expected, and now traders are increasingly expecting a Federal Reserve rate cut in September. The CME FedWatch tool shows an 81.9 percent probability of a cut, up from just 37 percent previously. Combined with delayed U.S.-China tariffs and chatter around crypto regulations like the Market Structure Bill, the stage is being set for a possible surge in liquidity.

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