Cryptocurrency markets are showing mixed signals today. While most major digital currencies remain stable, Solana (SOL) and Dogecoin (DOGE) are experiencing noticeable gains, amidst concerns surrounding potential trade tariffs and a possible large Bitcoin (BTC) sale by the UK government.
At the start of the week, on Monday, July 21st, the crypto market presented a varied picture. After significant developments over the weekend, including the GENIUS Act being signed into law by President Trump on Friday, large-cap cryptocurrencies showed modest gains or remained largely unchanged.
Bitcoin (BTC) has stabilized but remains just below $118,600. This represents a slight decrease of 1.7% over the past week, following BTC reaching a record high near $123,000 the previous week.
Ethereum (ETH) is also showing little movement over the last 24 hours, currently trading around $3,781. It previously broke the $3,700 mark, a level unseen since December. Despite this, ETH has surged over 27% this week and 57% this month, continuing its recent upward trend fueled by significant inflows into Ethereum ETFs and fresh institutional investments from treasury firms.
XRP has seen a nearly 3% increase today, trading at $3.62. This follows a strong week where it gained over 22%, surpassing the $3 mark for the first time since January.
In contrast to the general market trend, Solana (SOL) and Dogecoin (DOGE) stand out, experiencing surges of 8% and 6% respectively today.
The total market capitalization of all cryptocurrencies earlier reached a new high of $4.048 trillion – following breaking through the $4 trillion barrier for the first time last Friday – but has since slightly decreased to $4.01 trillion, a 3% drop today, according to CoinGecko. Trading volume over the same period reached $253 billion.
Liquidations and ETFs
Data from CoinGlass indicates that over $422 million worth of cryptocurrency positions were liquidated in the past 24 hours. Short positions accounted for $203 million of this, while long positions accounted for $219 million. Ethereum led in liquidations with $128 million, followed by Bitcoin at $63 million.
Regarding ETFs, U.S. spot Bitcoin ETFs saw inflows of over $363 million on Friday, according to SoSoValue. Meanwhile, Ethereum ETFs attracted a net inflow of $402 million on the same day.
Trump’s Trade Policies
Today’s cryptocurrency market activity occurs amidst significant trade-related news, including the Trump Administration’s upcoming tariffs and reports that the UK is considering a sale of seized Bitcoin holdings. Bitunix analysts suggest this potential sale could exert considerable downward pressure on Bitcoin prices, according to a statement they released.
Over the weekend, key officials from the Trump administration stated that the imposition of tariffs would begin on August 1st. Commerce Secretary Howard Lutnick noted to CNBC that while negotiations can continue beyond this date, tariffs will still be in effect.
However, Treasury Secretary Scott Bessent indicated today that the proposed tariffs, some reaching 40%, are designed to push trade partners to negotiate better deals rather than represent a fixed deadline. Bessent suggested that tariff implementation could be postponed if negotiations show progress.
This follows a week of significant developments in U.S. crypto regulation, with the U.S. House of Representatives passing three important bills last week—the CLARITY Act, the GENIUS Act, and the Anti-CBDC Surveillance State Act—and President Trump enacting the GENIUS Act into law on Friday evening.
Implications for Bitcoin
Werner Brönnimann, an investment manager at crypto bank AMINA, argues that “The improved regulatory landscape is creating positive momentum, distinguishing this market cycle from previous rallies driven solely by speculation.”
“Enhanced regulatory clarity, especially with the GENIUS Act becoming law and bipartisan backing for the CLARITY Act in the House, is breaking down institutional barriers that previously limited capital allocation to Bitcoin.”
Despite increasing institutional interest, Brönnimann warns that broader economic factors could still affect Bitcoin’s future performance.
“While regulatory clarity is helping institutional inflows, Bitcoin is still vulnerable to changes in monetary policy. More aggressive tightening by the Federal Reserve in response to inflation driven by tariffs could offset even strong demand from institutions,” Brönnimann explained.
“This illustrates Bitcoin’s evolution as institutional money enters the asset class: it is increasingly behaving like a risk-on asset, rather than an entirely independent alternative investment.”