Crypto Markets Navigate Resistance Zones with ETF Flows in Flux – Crypto News

Cryptocurrency markets showed mixed signals as investor caution grew ahead of major policy events expected today, including a Federal Reserve rate decision and a White House crypto report.

Large-cap crypto assets are mostly flat over the past 24 hours, while total crypto market cap slid to approximately $3.92 trillion, down 4.1% on the day, per CoinGecko data. Exchange-wide trading volume declined to approximately $138 billion in the past 24 hours.

Bitcoin (BTC) continues to trade sideways this week, trading just under $118,000, flat on both the daily and weekly timeframes. The leading cryptocurrency spike to as high as $118,644 earlier today before retracing.

Bitcoin has remained range-bound in recent weeks, and analysts at Glassnode said in a report yesterday that a break above or below this range could reshape market dynamics.

“A confirmed breakout beyond this zone could shift market dynamics, bringing the $141K region into focus,” Glassnode wrote in the repor, noting this level could trigger aggressive profit-taking.

Ethereum (ETH) — which today marks its ten year anniversary since launch — is also flat on the day, up just under 1% to trade around $3,800. The largest altcoin is up almost 5% on the week, and over 50% over the past month.

Among other large-cap altcoins, the price of XRP saw no change on the day, still trading above the $3 mark, but down 5% over the past week, losing some of its gains this month. Solana (SOL) is trading around $179, down 1.5% over the past day and nearly 7% on the week, also continuing to reverse some of its July growth. Last week, SOL broke over the $200 mark for the first time since February.

As for liquidations, roughly $217 million in leveraged crypto positions were wiped out over the past day, according to CoinGlass. Ethereum led 24-hour liquidations with $46.3 million, while other altcoins made up nearly $46 million of the total.

Bitcoin Awaits Catalyst

Coinbase noted in its monthly market positioning report for July that speculative positioning across large-cap tokens has intensified, buoyed by inflows into the U.S.-listed spot crypto exchange-traded funds (ETFs) and rising short-term holder activity. Still, signs of resistance are building.

“ETH upside faces strong resistance: a July spike in ask liquidity 2–5% above mid aligned with its local top and now forms a strong sell wall,” the exchange’s analysts said, adding that Bitcoin’s order book is more balanced and awaiting “new catalysts rather than entrenched order-book pressure.”

Despite price weakness, Coinbase pointed to improving on-chain fundamentals. Transfer activity, transaction counts, and fee generation are all trending upward, helping push its composite adoption index toward cycle highs. Stablecoin balances have also risen, a sign that sidelined capital may return once sentiment shifts, the analysts said.

ETF Interests Reverse

ETF flows offered mixed signals yesterday. Spot Bitcoin ETFs saw a sharp slowdown in net inflows, dropping from $157 million on Monday to just under $80 million on Tuesday. Ethereum ETFs, by contrast, rebounded to $218.64 million in inflows, up from $65.14 million the day before, according to SoSoValue data.

Capital is shifting just as a federal working group formed by U.S. President Donald Trump reportedly released a much-anticipated crypto policy report today, calling on regulators to clarify rules around digital asset trading and custody. The report urges Congress to authorize the CFTC to oversee spot markets for non-security tokens and recommends broader use of safe harbor provisions to foster innovation, according to Bloomberg.

FOMC Meeting

Ahead of the Federal Reserve’s meeting later today, markets largely expect officials to keep interest rates steady at 4.25%-4.50%, marking a likely fifth consecutive pause.

However, internal divisions appear to be growing, with Governors Christopher Waller and Michelle Bowman reportedly inclined to dissent in favor of a 25 basis-point cut, a rare move that could signal emerging uncertainty within the committee.

Konstantin Anissimov, CEO of trading platform Currency, described the moment as pivotal for digital assets in a commentary for The Defiant.

“Bitcoin’s surge past $117,000, driven by the U.S.-EU trade deal, the Fed’s July report promoting Bitcoin integration and infrastructure access, and reinforced by record ETF inflows, reflects growing institutional confidence in crypto as a macro hedge,” Anissimov said, adding that with traditional brokers exploring stablecoin issuance and Ethereum-native treasuries expanding DeFi’s reach, “the convergence of regulation, infrastructure, and innovation is accelerating.”