The cryptocurrency market continues to grapple with a broad-based correction, as both Bitcoin and major altcoins record fresh losses midweek. As of Wednesday, July 30, Bitcoin (BTC) trades down 0.2% on the day, while Ethereum (ETH) loses 0.4% and XRP drops by 0.8%.
The weekly picture underscores the magnitude of the altcoin sell-off. XRP is quoted at $3.12, representing a 10% decline from last week, while leading memecoin Dogecoin (DOGE) is down a staggering 16.2% over the same period.
This correction follows Bitcoin’s recent all-time high of $122,838, set on July 14. According to analyst Crypto Dan, the market is exhibiting classic signs of “overheating,” visible in heightened short-term investor activity. Data from CryptoQuant shows that the proportion of Bitcoin held for just one day to one week has spiked—an indicator of speculative fervor and a precursor to the current cooling phase.
Market correction dynamics: short-term holder spikeFed Rate Decision: A Key Catalyst for Crypto Markets
The direction of the crypto market in the coming days will depend heavily on technical factors and, crucially, the Federal Reserve’s upcoming interest rate decision. The market expects today’s announcement at 20:00 CET, with just 4% of analysts predicting a 25-basis-point rate cut to 4.25%.
Investors are expected to closely monitor Fed Chair Jerome Powell’s press conference at 20:30 CET. Should the central bank signal a dovish outlook or hint at future rate cuts, risk assets—including Bitcoin and altcoins—could see renewed upward momentum. In contrast, a continued wait-and-see approach may extend the current phase of consolidation.
Market correction dynamics: short-term holder spikeAltcoins Poised to Benefit from Market Recovery
Any resumption of bullish sentiment could see altcoins outperform. Ignacio Palomera, CEO of Bondex, notes, “While Bitcoin remains the undisputed king in terms of market capitalization, both interest and value have grown even more rapidly for altcoins like Ethereum, Solana, and XRP in recent months.”
For now, Crypto Dan expects the correction to remain short-lived, forecasting that the second half of the year will bring renewed upward price action for both Bitcoin and the broader crypto market