Bitcoin dropped to $62,236 on July 31, a nearly $3,000 slide that erased $40 billion in market capitalization and dragged most altcoins lower. Cardano and BNB bucked the trend with weekly gains, while HYPE posted the steepest decline among major coins. The total crypto market fell to $2.22 trillion as a stalled Senate bill and Middle East tensions weighed on sentiment.
Bitcoin's Rally Unravels in a Single Day
Bitcoin's late-July rally collapsed on July 31, when a slump pulled the price down to $62,236 after starting the day above $65,000. The nearly $3,000 wipeout dragged bitcoin's market capitalization from just over $1.3 trillion to $1.26 trillion. The slump came in a week when the Federal Open Market Committee voted to keep interest rates unchanged.
The slide left bitcoin up a modest 4.5% for the month, doing little to erase year-to-date losses that sat near 30% as of Aug. 2. Prospects of a return to levels last seen in January, when bitcoin nearly reclaimed $100,000, are dimming, especially with the U.S. Senate seemingly unable to reach a compromise on the CLARITY Act. Unresolved fighting in the Middle East remains a separate drag on sentiment, after Saudi Arabia launched strikes on Yemen and drones hit Egyptian infrastructure, a conflict that appeared to widen through the week.
Most Altcoins Track Bitcoin Lower, but ADA and BNB Buck the Trend
Bitcoin's price action mirrored across the broader altcoin market that week. Most high-cap coins logged losses ranging from 2% to 3% over seven days. Ethereum, which was nearing $2,000 on July 27, closed the week down 2.6% at just over $1,860. XRP fell nearly 2% and Solana ended the week down 2.7%.
HYPE, one of the few high-cap altcoins with more than 100% gains year to date, logged the largest decline, dropping 12%. RAIN was another high-cap coin with double-digit losses that week.
Not every altcoin followed bitcoin lower, however. Cardano and BNB were two high-cap altcoins with notable gains, rising 15.3% and 2.4%, respectively. UNI climbed 8.6%, while PUMP and BEAT added 16% and 7.2%.
Total Crypto Market Falls to $2.22 Trillion
Because most altcoins closed in the red, the altcoin market capitalization slipped from nearly $1.02 trillion to $964 billion. Combined with bitcoin's weekly decline, the crypto economy's aggregate market cap fell from a July 27 peak of nearly $2.33 trillion to $2.22 trillion on Aug. 2.
Some industry participants remain optimistic that the CLARITY Act will pass before the Senate recess, seen as a potential catalyst for bitcoin and the broader market. Yet recent Coldcard hacks and ongoing Middle East tensions continue to weigh on bitcoin, making even modest year-end price projections difficult to achieve.
Source: Bitcoin News
Trading involves risk.
Risk Disclaimer
