- Solana, Dogecoin, and Cardano drop sharply, leading $635M in liquidations.
- July 2025 saw $142M lost in crypto hacks, with CoinDCX suffering the biggest breach.
- Fed policy pause fuels uncertainty, causing traders to exit long positions.
The cryptocurrency market faced a sharp downturn on Friday as over $635 million in liquidations rattled investor confidence. Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) posted the steepest declines among major coins, each falling by about 7% in 24 hours.
Adding to the market’s woes, July 2025 marked a grim milestone in crypto security with $142 million stolen in 17 separate attacks, according to blockchain security firm PeckShield.
Crypto on the Edge: Liquidations and Hacks Shake Investor Confidence in July 2025
The sudden decline in top altcoins was accompanied by a noticeable shift in market sentiment. The Crypto Fear and Greed Index slid from 62 to 57, a move that signals growing caution but not outright fear. Analysts emphasize that such corrections are part of the natural market cycle, especially after extended rallies. The dip is widely viewed as a “market reset” rather than a collapse in investor trust.
Bitcoin, while not leading the losses, played a pivotal role in the sell-off. Over $6 billion in realized BTC gains were recorded recently, indicating many long-term holders cashed out profits. These exits often ripple into the broader market, triggering panic sells in more volatile altcoins like SOL, DOGE, and ADA. Despite this, institutional inflows into crypto remain stable, supporting the notion of longer-term resilience.
Security remains a pressing concern as bad actors continue to exploit system loopholes. The CoinDCX breach was particularly concerning due to its suspected insider involvement, leading to an employee’s arrest. Just days earlier, crypto exchange BigONE was hit by a third-party vulnerability. The cluster of incidents has reignited calls for stricter internal security protocols and more robust multi-layered defenses.
While July’s loss tally was high, the overall trajectory for 2025 shows improvement. Last year’s July losses were more than double, largely due to the $230 million WazirX hack. This year’s relative reduction in damages—despite high-profile breaches—indicates incremental progress in cybersecurity adoption across the blockchain space. Still, experts warn that decentralized platforms must remain vigilant as attackers become increasingly sophisticated.
Despite short-term turbulence and rising security threats, the broader crypto landscape continues to evolve with cautious optimism. Structural progress and increased oversight may pave the way for a more stable second half of 2025.
“Volatility is the price of admission to outsized returns.” – Morgan Housel
