Bitcoin retreats to $117k after hitting record high; Altcoins drop up to 10%
Synopsis
Bitcoin retreated to $117,466 after briefly hitting a record $123,091.6, as traders booked profits. Despite the dip, institutional flows and bullish on-chain metrics support long-term strength. Ethereum and other major altcoins also declined, with Stellar falling over 10%.
Bitcoin pulled back sharply on Tuesday after briefly hitting an all-time high of $123,091.6, reflecting a mix of profit booking and market consolidation. The world’s largest cryptocurrency dropped 4.6% to $117,466 in intraday trade, even as institutional inflows and strong on-chain data continued to support the broader bullish outlook.
Ethereum, the second-largest cryptocurrency by market cap, also edged lower by 2.8% to $2,968. Other major altcoins traded in the red, with Solana down 4.4%, Dogecoin sliding 7.7%, and Cardano losing 4.8%. Stellar posted the steepest fall, dropping 10.2%.
According to the CoinSwitch Markets Desk, Bitcoin’s recent surge was powered by robust institutional activity, including ETF inflows totalling $3.4 billion in July—of which $2.2 billion came in just two days. However, the momentum was briefly disrupted by outflows of nearly $100 million on Monday.
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TOP COIN SETSNFT & Metaverse Tracker17.92% BuyDeFi Tracker15.72% BuyWeb3 Tracker14.52% BuyAI Tracker11.91% BuyCrypto Blue Chip – 59.87% BuyTOP COINS (₹) XRP298 (5.72%)BuyEthereum311,866 (4.37%)BuyBNB63,642 (2.52%)BuyBitcoin10,249,544 (0.15%)BuyTether86 (0.12%)Buy“Rising Bitcoin futures open interest indicates strong demand from large players,” the CoinSwitch desk noted, adding that the price action appears to be forming an “inverse head and shoulders” pattern. “If BTC holds the neckline support at $113,000, we could see a breakout toward $148,000,” the note said.
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View Details »Avinash Shekhar, Co-Founder & CEO of Pi42, said that Bitcoin’s retreat to around $117,400 reflects healthy market dynamics following a sharp rally. “Despite the dip, institutional interest remains strong, and on-chain indicators suggest the broader uptrend is intact,” he said.
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Srinivas L, CEO of 9Point Capital, echoed a similar sentiment. “Following the breakout, Bitcoin is expected to consolidate at elevated levels. Pullbacks should be seen as buying opportunities. Momentum and fundamentals both support a sustained bullish outlook from here,” he said.
Edul Patel, Co-Founder and CEO of Mudrex, pointed out that the total crypto market cap has surged 16% in a week, reaching a record high of $3.88 trillion. “Bitcoin exchange inflows have dropped to their lowest levels since April 2015, indicating reduced selling pressure. The bullish structure remains intact despite the short-term dip,” he added.
Also read: Amid global BTC rally, desi bourses try options
While Ethereum briefly climbed toward $3,060—its highest level in five months—before easing back, analysts cited spot ETF inflows and renewed interest in tokenisation as key drivers of recent gains.
Markets are now awaiting the release of U.S. inflation data. The Consumer Price Index (CPI) is expected to show a year-on-year rise of 2.6%. A reading below expectations could fuel another leg up in the crypto rally, analysts said.
Meanwhile, geopolitical developments added to volatility. Bitcoin’s brief dip followed U.S. President Donald Trump’s announcement of a 100% tariff on Russian imports, triggering risk-off sentiment.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
