Crypto Market Plunges as Bitcoin ETF Inflows Reversal Sparks Risk-Off Sentiment
The cryptocurrency market saw a sudden downturn on July 23rd, following an abrupt reversal in Bitcoin ETF inflows. The total crypto market cap shrunk by 1.18% in the past 24 hours, with Bitcoin (BTC) down 1.35% and Ethereum down 1.85%. This shift was accompanied by increased risk-off sentiment across markets, as U.S.-Iran tensions escalated and Brent crude prices rose.
The longest streak of spot ETF inflows for BTC in nine months came to an end on July 23rd, with $225.1 million in outflows reported by SoSoValue. This reversal was a significant blow to the market's momentum, which had been fueled by bullish spot ETF flows and BTC price gains.
The bearish trend in Bitcoin's price structure continues to dominate the market, with the higher timeframe trend remaining bearish since October 2025. The recent downturn is attributed to buyer exhaustion and a lack of significant participation from new capital.