Why Is Crypto Down Today? BTC, XRP, SOL Wait for Catalyst

On Jul 2, 2025 at 9:49 am UTC by · 2 mins read

Leading cryptocurrencies like Bitcoin, XRP, and Solana are waiting for a major catalyst to push them upward, but they might not see one for now.

The cryptocurrency market faced a sudden wave of selloffs as July started, ending the accumulation spree that came after June 22.

The global crypto market capitalization fell 0.15% in 24 hours to $3.29 trillion, according to CoinMarketCap data. Bitcoin BTC $109 234 24h volatility: 2.2% Market cap: $2.17 T Vol. 24h: $36.33 B continued its consolidation around the $107,000 mark.

XRP XRP $2.27 24h volatility: 3.7% Market cap: $134.19 B Vol. 24h: $3.89 B and Solana SOL $155.1 24h volatility: 3.9% Market cap: $82.93 B Vol. 24h: $4.85 B declined 1.4% and 1.1% over the past day. XRP is trading at $2.19, and SOL price is hovering close to $150.

CoinMarketCap data shows that the total crypto trading volume also declined 3%, falling below the $100 billion zone. The drop in trading volume suggests that the selling pressure hasn’t increased; instead, investors and traders are playing the waiting game.

The fear and greed index fell from 50 to 46, showing a mild increase in bearish sentiment, but it is still hovering in the neutral zone.

Where Is Bullish Catalyst?

Right now, everyone is looking for the ultimate catalyst that could trigger a stronger bull run. But the macro and micro indicators could hint at a delay before rising again.

For instance, the US M2 money supply reached a new all-time high of $21.94 trillion today.

This could suggest the potential rise of inflation, which is still not fully under control, again.

Despite a sharp fall from 5.3% in May 2023 to 2.8% in May this year, the US Consumer Price Index is still a big puzzle for the US Federal Reserve to fix.

Raphael Bostic, the president of the Atlanta Fed, says it’s highly unlikely that the interest rates would see a cut at the July 29-30 FOMC meeting due to the new tariff regime in the US.

Bitcoin also saw a decline in demand as June came to an end, which would consequently put pressure on the asset. Spot BTC ETFs in the US also saw a net outflow of $342.2 million on July 1 for the first time since June 6.

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