The total cryptocurrency market capitalization contracted by 1.18% over the past 24 hours, with the Crypto Market Fear and Greed Index registering a score of 34, indicating that fear remained the dominant sentiment among market participants.

Bitcoin [BTC] had recently recorded its longest streak of spot ETF inflows in nine months, a signal of increased demand and a possible sentiment shift. These funds, approved by the U.S. Securities and Exchange Commission in January 2024, have become a closely tracked proxy for institutional engagement with Bitcoin, making any sustained shift in their flows a meaningful gauge for the broader market. However, that streak has now been broken.

According to SoSoValue, a cryptocurrency research platform that aggregates macro market data, spot Bitcoin ETFs recorded -$225.1 million in net flows on Thursday, July 23.

The reversal in ETF flows coincided with escalating U.S.-Iran tensions and rising Brent crude oil prices, both of which contributed to a broader risk-off atmosphere across financial markets.

Bitcoin declined 1.35%, while Ethereum fell 1.85%. TOTAL3, an index tracking the altcoin market cap excluding Ethereum, dropped 1.17% over the same 24-hour period.

Separately, some BTC treasury firms—public companies that hold Bitcoin as a primary reserve asset on their balance sheets—have begun moving away from their accumulation models, actively seeking to liquidate holdings and exit crypto treasury strategies entirely. This represents a notable shift from the aggressive buying posture that many such firms maintained throughout earlier bullish periods.

Liquidations and Trend Shifts

On July 19 and 20, short liquidations dominated the crypto derivatives market, totaling $305.68 million. By comparison, only $164.04 million in long liquidations were recorded at the start of the week.

Since then, the dynamic has reversed sharply: $489.268 million in long liquidations have occurred, compared to $205.13 million in short liquidations. Traders who had positioned for continued upward momentum were effectively forced out of the market. Large-scale long liquidations typically compound downward price pressure, as exchanges automatically close leveraged positions when collateral falls below maintenance thresholds, triggering forced selling.

The recent price bounce was accompanied by a lack of meaningful participation from new capital. Short-term holders continued to realize losses, and bears maintained control over the market's direction.

Price Structure Remains Bearish

Bitcoin's higher-timeframe price trend has been bearish since October 2025, and the 4-hour chart confirmed a similar structure. A breach of the $67,292 swing high would be required to shift this structure to a bullish outlook.

Bulls attempted but failed to convincingly challenge the $67,000 resistance zone. The downturn reflects buyer exhaustion combined with the prevailing bearish price structure.

If the current trend persists, the next downward impulse move could bring a retest of the $57,800 area, provided sellers remain in control.

The crypto market advanced steadily earlier in the week, supported by bullish spot ETF flows and BTC momentum. That trajectory reversed abruptly as both Bitcoin and Ethereum encountered key resistance zones at $67,000 and $1,920, respectively.