Why Crypto's Down: BTC & ETH Drop Amid Congress Bills

The crypto market took a hit on July 16, 2025, with Bitcoin (BTC) sliding below $117,000 after hitting a record $123,000 earlier this week. Ethereum (ETH), XRP, and Dogecoin also saw sharp declines, with the total market cap dropping 6.7% to $3.74 trillion. 

So, why is crypto down today? Key factors include massive profit-taking, macroeconomic pressures, and uncertainty around the U.S. Congress’s “Crypto Week” bills. 

Let’s break down the reasons behind the dip and what’s next for Bitcoin, ETH, and the broader market.

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Why Crypto Prices Are Falling Today

Bitcoin’s surge to $123,000 on Monday, July 14, sparked a frenzy of profit-taking. Glassnode reports that long-term holders cashed out $1.96 billion, accounting for 56% of the $3.5 billion in realized profits over the past 24 hours. 

This sell-off created a supply gap between $110,000 and $116,000, leaving Bitcoin vulnerable to volatility. Whale activity on Binance spiked, with 1,800 BTC deposited by large holders, signaling big players locking in gains. 

CryptoQuant’s Crazzyblockk noted that whales are either securing profits or hedging amid high volatility.

Massive Liquidations Fuel Market Volatility

The market saw over $675 million in liquidations in the last 24 hours, one of the largest events since April. Bitcoin longs took the biggest hit at $333 million, followed by Ethereum at $113 million and XRP at $36 million. 

A single $98.1 million BTC/USDT position was wiped out, showing the scale of leveraged bets unraveling. Elevated funding rates have made leveraged trading costly, adding caution among traders after February’s $2 billion liquidation event. 

This cascade of liquidations amplified the downturn across major coins.

Read Also: Why is the Cryptocurrency Market Down Today? Key Factors Behind Bitcoin and Altcoin Drop

Crypto Week in Congress: Impact on Prices

The U.S. House of Representatives dubbed July 14–18 “Crypto Week,” focusing on three key bills: the GENIUS Act, the CLARITY Act, and the Anti-CBDC Surveillance Act. These aim to regulate stablecoins, clarify crypto oversight, and ban central bank digital currencies (CBDCs).

While these bills signal growing mainstream acceptance, uncertainty around their passage has spooked investors, contributing to the market dip.

GENIUS Act: Stablecoin Regulation

The GENIUS Act, already passed by the Senate, sets a federal framework for stablecoins, requiring issuers to hold 1:1 dollar reserves. It’s expected to pass the House soon and head to President Trump’s desk, who has voiced support. 

However, Democratic amendments addressing money laundering and ethical concerns could delay progress, adding market uncertainty. Stablecoins are key for Ethereum, and passage could boost ETH adoption, but short-term jitters are evident.

CLARITY Act: Defining Crypto Rules

The CLARITY Act aims to split regulatory oversight between the SEC and CFTC, defining which cryptos are securities or commodities. 

This could resolve long-standing industry disputes but faces resistance from Democrats like Senator Elizabeth Warren, who warn it might weaken securities laws. The lack of a Senate counterpart adds doubt, impacting investor confidence.

Anti-CBDC Act: Privacy Concerns

The Anti-CBDC Act seeks to block the Federal Reserve from issuing a digital dollar, citing privacy risks. While it aligns with crypto’s ethos, its passage is uncertain as the Senate hasn’t yet considered it. This legislative limbo has traders on edge, contributing to the sell-off.

Read Also: Crypto Market Crash? Here's Why Prices Are Dropping Today

Macroeconomic Pressures Weigh In

The market’s volatility aligns with broader economic uncertainty. Fed Chair Jerome Powell hinted at rising inflation due to Trump’s proposed tariffs, with economists forecasting headline inflation at 2.7% and core at 3.0%. 

Trump’s push for lower interest rates (1% vs. the current 4.25–4.5%) clashes with Powell’s cautious stance, creating uncertainty. Higher inflation could delay rate cuts, historically a headwind for crypto prices.

Geopolitical and Tariff Tensions

Trump’s trade disputes with the EU, Mexico, and others are rattling markets. Rising oil and shipping costs, with the World Container Index hitting $3,543, signal inflationary pressures. 

These macro factors are pushing investors toward safe-haven assets like gold, draining momentum from riskier assets like crypto.

Bitcoin and ETH Price Outlook

Bitcoin Price Today

Bitcoin trades at $116,999, down 4.4% from its $122,838 peak. Analysts like Mikybull Crypto see a potential drop to fill the CME futures gap at $114,380–$115,630. However, staying above $108,000 keeps the bull trend intact, with Bitget’s Ryan Lee eyeing $150,000 by Q3 2025, driven by ETF inflows and supply constraints.

ETH Price Today: $2,986

Ethereum fell 1.4% to $2,986, dipping below $3,000. Analysts predict a range of $2,900–$3,400, with the GENIUS Act potentially boosting ETH as the primary stablecoin platform. Institutional moves, like Bit Digital’s $67.3 million ETH treasury expansion, signal long-term confidence.

Other Movers: XRP and Dogecoin

XRP dropped 5% to $2.78, and Dogecoin fell 7.6% to $0.1919, reflecting broader market weakness. Both face pressure from liquidations and macro uncertainty but could rebound if regulatory clarity emerges.

Read Also: Crypto Market Crash: Key Factors Behind Today’s Downturn

What’s Next for the Crypto Market?

Despite the dip, analysts remain bullish. Katie Stockton of Fairlead Strategies predicts Bitcoin could hit $135,000 medium-term, while Standard Chartered’s institutional trading launch underscores growing adoption. 

The Fear and Greed Index at 70 suggests greed but warns of an overheated market, hinting at further consolidation. ETF inflows, with $297.4 million for Bitcoin and $259.04 million for ETH on July 14, show institutional support persists.

Conclusion

The crypto market’s drop today stems from profit-taking, liquidations, and uncertainty around Congress’s Crypto Week bills. Bitcoin at $116,999 and ETH at $2,986 reflect short-term volatility, but long-term prospects remain strong with ETF inflows and regulatory progress. 

Keep an eye on inflation data and legislative outcomes, as they’ll shape whether crypto rebounds or faces deeper corrections. Stay informed and trade cautiously.

FAQ

Why did BTC and ETH suddenly drop today?

Profit-taking and whale sell-offs triggered $675M in liquidations, crashing BTC below $117K and ETH under $3K.

What’s the role of the U.S. Congress in today’s crypto dip?

Uncertainty from “Crypto Week” bills, especially the GENIUS and CLARITY Acts, shook investor confidence and fueled market jitters.

How did whales impact the BTC crash?

Whales dumped 1,800 BTC on Binance, locking in $1.96B in profits, spiking volatility and deepening the sell-off.

Are macro trends hurting crypto too?

Yes. Rising inflation, Powell vs. Trump’s rate clash, and trade war fears are pushing investors away from risk assets like crypto.

What price zones should traders watch now?

BTC eyes the $114K CME gap, but holds strong above $108K. ETH trades between $2.9K–$3.4K, watch for GENIUS Act momentum.

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