Why Is Cryptocurrency Declining Today? – June 25, 2025

Following a day of notable gains, the cryptocurrency market has experienced a decline today. Most of the top 100 cryptocurrencies have seen price reductions over the last 24 hours. Additionally, the total cryptocurrency market capitalization has decreased by 1.6% during this timeframe, now standing at $3.4 trillion. The overall trading volume in the crypto market is recorded at $99.8 billion.

TLDR:

The crypto market has turned negative;

Most of the top 100 cryptocurrencies experienced price declines;

BTC and ETH each rose by less than 1%, trading at $106,413 and $2,443, respectively;

Market reactions are linked to de-escalation in the Middle East, benefiting higher-risk assets;

‘Some are concentrating on short-term corrections, but Bitcoin is ultimately trending upward’;

The market remains vigilant;

Geopolitical risks continue, along with the potential for investors to shy away from risk assets.

Crypto Winners & Losers

Out of the top 10 cryptocurrencies by market capitalization, six have recorded gains, albeit with minimal increases of under 1% each.

Bitcoin (BTC) has risen by 0.7%, currently trading at $106,413, up from $101,924 observed two days prior.

In addition, Ethereum (ETH) has increased by 0.8%, now priced at $2,443, making it one of the top performers in its category today. Lido Staked Ether (STETH) and Tron (TRX) also noted a 0.8% increase each.

XRP (XRP) experienced the largest decline in this category, dropping 0.7% to a price of $2.18.

Furthermore, the majority of the top 100 cryptocurrencies have seen their values decrease over the past day, with the most significant drop being Virtuals Protocol (VIRTUAL), which fell by 8.5% to $1.56.

Conversely, Pi Network (PI) recorded the highest appreciation today, rising 13.4% to $0.5998, marking the only double-digit change in this category. Aptos (APT) follows with a 9% increase to $4.83.

It is noteworthy that the market has cooled off after several positive developments observed yesterday.

Prices surged yesterday following the proposal by Japan’s Financial Services Agency to reclassify digital assets under the Financial Instruments and Exchange Act, which could potentially reduce crypto taxes from 55% to 20% and enhance the prospects for spot ETFs.

JUST IN: Japan’s Financial Services Agency proposed to bring crypto assets under the Financial Instruments and Exchange Act.
This could legalise #Bitcoin ETFs and cut tax on crypto gains. pic.twitter.com/m0qmWWVnx3

— Bitcoin Magazine (@BitcoinMagazine) June 24, 2025

Moreover, recent macroeconomic shifts and reduced geopolitical risks, particularly the announced ceasefire between Israel and Iran, have invigorated the crypto market, prompting investors to refocus on risk assets.

The tenuous agreement appears to be holding for the moment, although the information emerging from Israel, the US, and Iran remains somewhat unclear. Concurrently, Israel has continued its military actions in Gaza.

Israeli forces continue their military operations in Gaza, resulting in Palestinian casualties, as US President Donald Trump announces a ceasefire between Israel and Iran.
Follow our LIVE coverage: https://t.co/O9N33VMt4b pic.twitter.com/ts7GT9O3hN

— Al Jazeera English (@AJEnglish) June 25, 2025

Developments in the region can change rapidly and may impact the markets just as swiftly.

‘Bitcoin is Undeniably on the Rise’

Dom Harz, co-founder of Layer 2 BOB, stated that BTC’s recent price drop below $100,000 illustrates how geopolitical uncertainty can trigger a risk-averse sentiment. However, he believes the dip is “not a long-term concern and is merely a distraction from Bitcoin’s true trajectory,” according to Harz.

“While some are fixated on short-term corrections, it is undeniable that Bitcoin, and particularly Bitcoin DeFi, is ultimately on the rise.”

Harz asserts that Bitcoin is actively evolving and entering a phase characterized by institutional adoption, clearer regulations, and rapid technological advancements. This is attributed to Bitcoin’s utility, he notes. Institutions are not only interested in holding Bitcoin but also in utilizing it.

Additionally, Gadi Chait, Head of Investment at Xapo Bank, contended that Bitcoin’s status as a safe-haven asset is still developing. Nevertheless, “recent signals indicate it’s moving closer.”

“Historically viewed as volatile, Bitcoin’s reaction to recent macro shocks, such as the events in the Middle East, has been notably restrained, neither perfectly tracking gold nor mirroring equity sell-offs,” Chait explains.

Geopolitical shocks often lead to an initial flight to cash, but Chait notes that “the combination of institutional rallies and macro-driven bids now means that dips are shallower and recoveries quicker than in previous cycles.”

“In recent market downturns, Bitcoin’s relatively shallow pullbacks, coupled with consistent institutional inflows, indicate a shift in perception. Its increasing correlation with gold suggests it is being regarded as a store of value, while its rapid rebounds reflect its growing integration into mainstream finance,” Chait concludes.

Levels & Events to Watch Next

As of this writing, BTC is trading at $106,413. Over the past day, the price gradually rose from a daily low of $104,854 to an intraday high of $106,691.

The coin has surpassed the $106,000 threshold. Investors are now observing whether it will breach the $107,500 mark next or potentially fall below $104,000. These movements could pave the way for further price increases or declines.

Bitcoin Price Chart. Source: TradingView

Simultaneously, Ethereum is currently priced at $2,443. It reached an intraday high of $2,473 before dropping to $2,428 overnight (UTC).

Meanwhile, the sentiment in the crypto market has remained neutral after exiting the fear zone yesterday. The Fear and Greed Index has risen from 47 yesterday to 48 today. The chart below illustrates the sentiment gradually decreasing over the past 30 days.

The current value indicates a degree of unease and caution in the market, although investors are not in a state of panic.

Source: CoinMarketCap

Additionally, on June 24, when the market experienced a significant uptick, US BTC spot exchange-traded funds (ETFs) recorded substantial inflows of $588.55 million. BlackRock topped the list with $436.32 million in inflows.

Source: SoSoValue

Furthermore, US ETH ETFs saw inflows of $71.24 million. BlackRock attracted $97.98 million, while Fidelity experienced outflows of $26.74 million.

Source: SoSoValue

In addition, Japanese investment firm Metaplanet raised over $517 million on the first day of its ‘555 Million Plan’. The firm aims to acquire 210,000 Bitcoin by the end of 2027, which represents roughly 1% of the total supply.

Moreover, entrepreneur Anthony Pompliano’s ProCap BTC announced the acquisition of 3,724 BTC for $386 million. This follows shortly after revealing plans to go public later this year.

We have purchased 3,724 Bitcoin.
This acquisition occurred within one day after announcing a $1 BILLION merger and over $750 million fundraise.
The average price was approximately $103,785 per bitcoin.
We believe bitcoin is the new hurdle rate.
If you can’t beat it, you have to buy it.… pic.twitter.com/eX1iI9fVhm

— Anthony Pompliano (@APompliano) June 24, 2025

Quick FAQ

1. Why did crypto move against stocks today?

The crypto market has shifted to negative territory since last night, while the stock market has seen gains on Tuesday. The S&P 500 rose by 1.11%, the Nasdaq-100 increased by 1.53%, and the Dow Jones Industrial Average climbed by 1.19%. The stock market responded directly to a ceasefire agreement between Israel and Iran.

1. Is this dip sustainable?

The market exhibits caution. There is currently no panic, and analysts maintain a bullish outlook for the long term, but the unstable global situation could still drive prices lower.

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