Cryptocurrencies XRP and TON Show Resilience Amidst Ongoing Market Correction: Weekend Observations for Bitcoin and Altcoins
The cryptocurrency market has experienced a significant drop in value in late July and early August 2025, with Bitcoin's price dipping to a multi-week low of under $113,000. This downturn can be primarily attributed to weakening institutional demand, combined with cautious investor sentiment amid macroeconomic uncertainty and high U.S. interest rates.
Institutional support for Bitcoin ETFs has become inconsistent, with inflows followed by significant outflows, signaling investor uncertainty. Long-term holders have reduced their Bitcoin holdings, futures open interest has declined, and speculative activity has slowed. These factors reveal the market's dependence on steady institutional participation.
The U.S. Federal Reserve's decision to maintain high interest rates without cuts and a strong job market has added pressure by encouraging investors to favor safer assets over riskier ones like cryptocurrencies. ETF inflows, previously a steady source of institutional capital, have weakened, with inflows on some days countered by outflows on others.
Strong U.S. employment data has reinforced expectations of sustained high interest rates. Technical analysis points to a drop below important price levels (~$117,200) signaling a possible pause or consolidation phase before any altcoin rally could start. Seasonal August weakness historically weighs on Bitcoin’s price, and regulatory tightening in the U.S. has added to investor caution.
Despite this short-term drop, some experts still expect Bitcoin to rally toward $135,000–$140,000 by the end of 2025 before potentially entering a bear market in 2026.
New Account Incentives for Cryptocurrency Exchanges
Two major cryptocurrency exchanges, Bybit and Binance, are offering incentives for new account registrations. Bybit is offering a $500 FREE position on any coin for new accounts registered via a specific link, while Binance offers a $600 exclusive welcome offer for new accounts.
Impact on Individual Cryptocurrencies
In addition to Bitcoin, other cryptocurrencies have also experienced price declines. ETH has slipped below $3,500, representing a 4% daily drop. TON has risen by over 3.5% to almost $3.6, but this increase has not been enough to offset the overall market downturn. Altcoins, including Pi, have also experienced price declines, with Pi Network's native token dumping to another all-time low. SOL is below $165, while DOGE, HYPE, LINNK, BCH, and HBAR have retraced by around 3-4%. ENA has plunged by 7%.
XRP and LTC are among the exceptions, slightly in the green. However, the total crypto market cap has further declined to $3.750 trillion, representing a significant drop of nearly $250 billion in a few days.
Regulatory Tightening and Seasonal Weakness
Regulatory tightening in the U.S. and seasonal weakness in August have contributed to the negative momentum in the cryptocurrency market. Regulatory concerns have led to investor caution, while seasonal weakness historically weighs on Bitcoin’s price.
Conclusion
The recent drop in Bitcoin’s price and the overall crypto market cap in late July and early August 2025 can be attributed primarily to weakening institutional demand, combined with cautious investor sentiment amid macroeconomic uncertainty and high U.S. interest rates. Despite this short-term downturn, some experts still expect Bitcoin to rally toward $135,000–$140,000 by the end of 2025 before potentially entering a bear market in 2026.
[1] CoinDesk
[2] Bloomberg
[3] Reuters
In light of the recent decline in Bitcoin's price and the overall crypto market cap, two major exchanges, Bybit and Binance, are offering incentives for new account registrations to attract investors. While Bitcoin, Ethereum, TON, and other altcoins have experienced price drops, XRP and LTC are among the exceptions. The negative momentum in the cryptocurrency market is attributed to weakening institutional demand, cautious investor sentiment, macroeconomic uncertainty, high U.S. interest rates, and a combination of regulatory tightening and seasonal weakness in August. However, some experts still anticipate Bitcoin to rally and potentially reach $135,000–$140,000 by the end of 2025.
