The crypto market hasn’t recovered since the bear market began right after the largest liquidation event in its history on 10th October 2025. On that day, over $19 billion were simply wiped out.
Since then, the market has swung through highs and lows, sparking concern over whether the bulls or the bears have the upper hand.
The market now sits at another of those turning points, just after Bitcoin [BTC] cleared the $65,000-resistance and several altcoins printed local highs.
Investors pull back $85 billion
Whether the market records deeper losses is tied directly to its total capitalization, which has shed roughly $85 billion since 21st July.
This decline may be evidence of bearish positioning, profit-taking, or a mix of both. In fact, the drop landed right after the market set a fresh high, hinting towards investors probably locking in their money.
At the time of writing, the Fear and Greed Index seemed to capture this shift. It showed that investors are simply fearful—likely spooked by the prospect of another liquidation.
It had a reading of 35. It alluded to capital sitting largely on the sidelines, despite some quiet accumulation.
Investors are waiting, not exiting
There is an interesting dynamic that might suggest that investors are simply waiting on the sidelines for calm to settle in. For example, the Altcoin Season Index, which tracks whether altcoins are leaning toward a bull run or bear dominance.
At press time, the index was trending upwards, even as the altcoin’s market capitalization slid over the same stretch.
On 23rd July, the index sat at 51 with altcoin market capitalization at $923.67 billion. By 25th July, it had climbed to 53 while altcoin capitalization fell to $900.46 billion. This seemed to be a divergence pointing to lingering bull interest.
To frame this, crypto market sentiment printed its latest reading at 1.78, down from an all-time high of 3.23 set on 22nd July. This implied that investors have stayed bullish, though they may be far less optimistic than they were days ago.
Bull market hasn’t arrived yet!
Finally, a key indicator of whether investors are willing to step back in runs through stablecoin supply.
Over the last 24 hours, for instance, barely any stablecoin inflows have reached the market, with supply holding near flat. Across the past week, a slight uptick pushed roughly $824.5 million into the market.
That figure appeared to be minimal against the outflows the market absorbed over the same week. Until a major inflow arrives, likely north of the $1 billion-mark, the market is likely to stay muted.
Final Summary
- The crypto market shed roughly $85 billion after 21st July after investors took profits and braced for another liquidation event.
- Altcoin Season Index climbed from 51 to 53, but flat stablecoin supply suggested there was no real move back in yet.
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