Key Insights

The crypto market moved lower on Friday as most major tokens traded in negative territory.

Risk-off sentiment persisted across global stocks, bonds and digital assets.

Traders also responded to $225.2 million in spot Bitcoin ETF outflows.

The total valuation of all crypto tokens fell 1.57% over 24 hours on Friday. Bitcoin declined more than 2% and moved toward the $64,000 area. Jito, Pi Network, Lighter, World Liberty Financial and Pump were among the weakest-performing tokens during the session.

The pullback came alongside a broader risk-off move across global financial markets. Outflows from Bitcoin exchange-traded funds and rising geopolitical risks added to the pressure. The decline affected Bitcoin, Pi Network, XRP and other cryptocurrencies. Bitcoin, as the largest digital asset by market capitalization, frequently sets the tone for the broader crypto market, and its pullback tended to weigh on smaller tokens.

Crypto Market Decline Follows Wider Risk-Off Move

The crypto market fell as investors continued to adopt a risk-off approach amid elevated market volatility. Data showed that global equities extended losses during the week. In Japan, the Nikkei 225 Index dropped by more than 3.13%, while the Shanghai Composite fell 1.6%.

U.S. stocks were relatively unchanged after the S&P 500 and Nasdaq 100 indices each dropped by more than 2% in the previous session. Both indices have fallen more than 2.5% from their highest levels this year as earnings season continues.

The broader sell-off followed mixed earnings reports from companies including Tesla and Alphabet. Alphabet shares declined after the company raised its capital spending plans. Tesla shares fell after its earnings per share, or EPS, came in below expectations. The company also said it expects free cash flow to remain negative.

Stocks and crypto prices were also reacting after President Donald Trump announced new global tariffs, citing human rights abuses. The tariffs, however, are not expected to have a major market impact because they are replacing measures that were set to expire.

Concerns also remained focused on the continuing war in the Middle East. Trump warned that the United States would launch major attacks against Iran as soon as this weekend. Iran warned that it would continue attacks against U.S. bases. Against that backdrop, crude oil prices continued to rise, with Brent reaching $100.

Higher oil prices could cause inflation to rebound, which may push the Federal Reserve to raise interest rates later this year. Cryptocurrencies and other risk assets tend to be sensitive to interest-rate expectations, as higher rates make yield-bearing alternatives more attractive and reduce demand for speculative investments. Data also showed that the odds of a rate hike have increased on Polymarket, a decentralized prediction-market platform where users wager on the outcomes of real-world events.

Spot Bitcoin ETFs Posted Outflows on Thursday

Bitcoin, XRP and Pi Network prices remained under pressure amid continuing volatility in the ETF market. Spot Bitcoin ETFs, which the U.S. Securities and Exchange Commission approved in January 2024, let investors gain exposure to Bitcoin through traditional brokerage accounts without directly holding the asset. Since their launch, these funds have become a key conduit for institutional and retail capital flows into the crypto market. Data showed that spot Bitcoin ETFs lost more than $225 million in assets on Thursday. The outflows were broad-based, led by BlackRock's IBIT, which shed $202 million, and Fidelity's FBTC, which lost $5.6 million.

Bitwise's BITB, Ark's ARKB, Franklin's EZBC and WisdomTree's BTCW each lost more than $4.3 million. The only fund with a positive figure was Morgan Stanley's MSBT, which added $5 million in assets.

The start of selling could indicate that some investors believe the rally is beginning to fade.

Other crypto ETFs also recorded outflows or no activity on Thursday. Spot Solana ETFs lost more than $1.27 million on Wednesday and saw no activity on Thursday. Spot XRP ETFs have not recorded inflows for two consecutive days.

At the same time, crypto liquidations jumped by more than 61% over the past 24 hours. Futures open interest also fell to $114 billion.

Bitcoin Technicals Add Pressure to the Market

Bitcoin retreated from about $67,000 earlier in the week toward the $64,000 region. The daily chart showed resistance near the 100-day exponential moving average, a trend-following indicator that traders use to gauge the direction of price momentum over a roughly three-month horizon. Bitcoin's 100-day exponential moving average stood near $68,000 on Friday.

The Relative Strength Index, a momentum oscillator that measures the speed and magnitude of recent price changes on a scale of 0 to 100, moved closer to neutral territory as buying momentum weakened.

Bitcoin also appeared to be forming a short-term double-top pattern near $67,000. Traders often view that formation as bearish when the price breaks below its neckline.

However, the pattern's $57,768 neckline remained far below the current market price. Bitcoin had not confirmed a full double-top breakdown at that level.

The immediate support zone remained between $63,600 and $64,000. A sustained close below that range could expose $62,000 and the psychological $60,000 level.

Resistance remained near $65,800, followed by $67,000 and the 100-day exponential moving average.

A move back above $67,000 would weaken the bearish setup. It could also restore the rebound that began earlier in July.

The near-term outlook remained linked to oil prices, technology stocks and ETF flows.

Additional Bitcoin ETF outflows could keep pressure on the market. Renewed inflows or easing geopolitical tensions could support a recovery. The crypto market decline therefore reflected several pressures rather than a single isolated event.