This week, cryptocurrencies have declined, with Bitcoin falling below $116,000 and Ethereum struggling.

    by VT Markets
    /
    Jul 25, 2025
    Bitcoin has dropped over 3%, falling below $116,000 for the first time since July 11. This decline threatens its recent upward momentum, and if Bitcoin doesn’t hold its ground, it could slide further toward $110,000. Even with this setback, Bitcoin is up nearly 8% in July, but it hasn’t performed as well as Ethereum, which has jumped 45% this month. Although Ethereum recently dipped nearly 3%, its price has stalled around $3,800 and is now testing closer to $3,600. The $116,000 level is crucial for Bitcoin’s recovery, while for Ethereum, the key support level is $4,000. However, for Ethereum to reach this level, buyers may need to be patient as the market develops. As mentioned by Low, the current challenges may lead to more volatility. If Bitcoin breaks below this key level, we could see a larger decline. Therefore, buying protective put options with strike prices near $60,000 could be a smart move to protect any long positions. Recent trends support this cautious outlook. There have been six straight days of net outflows from U.S. spot Bitcoin ETFs, with totals exceeding $870 million. This ongoing selling from institutional investors reinforces the idea that prices might drop even further. It shows that the market is currently absorbing a lot of supply. This phase of consolidation is common based on historical trends. After the 2020 halving, we witnessed a similar period of sideways trading before the next big upswing. Thus, we see the current lull not as the end of the bull market but as a possible accumulation phase that requires patience. For Ethereum, its strong performance this month relates to market expectations of spot Ether ETF approvals. We are closely monitoring the updated S-1 filings from major asset managers, which analysts believe could lead to trading in early July. This potential development is why traders are leaning toward Ethereum over Bitcoin. This situation offers a great opportunity for a pairs trade: going long on Ethereum futures while shorting Bitcoin futures to benefit from their relative strengths. For options traders, bull call spreads on Ethereum with target strikes below the important $4,000 level could effectively allow speculation on the anticipated pre-ETF rally. This strategy capitalizes on the differing narratives between these two assets.

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