The cryptocurrency market moved lower on July 8, with total market capitalization falling 2.2% to $2.22 trillion. Bitcoin declined 1.66% over 24 hours to $62,245, while Ethereum dropped to $1,743.90, down 2.06%. Market sentiment weakened sharply as the Fear & Greed Index slid from 27 a day earlier to 20, signaling extreme fear across the sector.
Geopolitical shock drives risk-off reaction
A key trigger behind the sell-off was a renewed rise in geopolitical tension tied to the United States and Iran. According to the source material, President Donald Trump said the U.S.-Iran ceasefire was “over,” reviving concerns about a broader regional conflict. Such headlines typically push investors away from risk assets, and crypto was no exception as traders reduced exposure amid rising uncertainty.
Strategy sale adds institutional pressure
Market weakness was also amplified by a notable institutional sale. Between June 29 and July 6, Strategy sold roughly 3,588 BTC for about $216 million, marking its largest Bitcoin sale since 2022. The transaction increased immediate selling pressure and was interpreted by parts of the market as a negative signal for institutional confidence, adding to already fragile sentiment.
Liquidations and ETF outflows deepen the drop
As prices fell, leveraged positions were flushed out. Total liquidations over the past 24 hours reached about $478.5 million, with long positions taking the bulk of the damage. At the same time, U.S. spot Bitcoin ETFs have seen around $6 billion in outflows so far this year, pointing to continued weakness in institutional demand and reinforcing a cautious outlook for the near term.
Key Bitcoin levels and next catalysts
From a market structure perspective, Bitcoin’s immediate support is identified at $60,805, with major support near $58,000. On the upside, immediate resistance stands at $64,688, followed by a major resistance level at $65,589. Whether Bitcoin can hold these areas may shape the next phase of price action. Beyond crypto-specific factors, traders are also watching the Federal Reserve closely, with mid-July minutes and early August labor data likely to influence expectations around rates. Broader weakness was visible across altcoins as well, with SOL down 4.62%, BNB down 2.6%, and XRP down 3.56% over the same 24-hour period.