The cryptocurrency market returned to trading in a sharp decline on Wednesday, July 8, 2026, with the Bitcoin (BTC) trading at US$ 62.252, accumulating an almost 2% drop over the last 24 hours. The move comes amid rising tensions between the United States and Iran, as well as new statements from current U.S. president Donald Trump, which increased investor caution.
The market’s top cryptocurrency reached and even surpassed the US$ 64 thousand region on more than one occasion in recent days, but it has once again found strong resistance. Selling pressure ramped up quickly and pushed Bitcoin back below that level, interrupting the recovery seen at the beginning of the month.
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The first days of July were already marked by high volatility. After falling below US$ 58 thousand for the first time in almost two years, the BTC began a consistent recovery, surpassing US$ 63 thousand over the weekend and returning to the US$ 64 thousand range at the start of the week.
However, a large Bitcoin sell order carried out by Strategy increased pressure on the market and sparked a profit-taking move. The asset fell to around US$ 61.200 before quickly reacting and reaching US$ 64.600, but the recovery lost momentum as the geopolitical environment deteriorated.
Pressure on the markets increased after new clashes between the United States and Iran. A few hours later, Donald Trump said he believes the Iran "memorandum of understanding came to an end", a statement that boosted the search for more defensive positions among investors.
Even with the recent correction, Bitcoin maintains a market capitalization close to US$ 1,24 trillion, while its dominance over the cryptocurrency market remains around 56,6%, showing that BTC continues to concentrate most of the sector’s value.
Among altcoins, the Pi Network (PI) has again recorded one of the worst performances of the day. The token fell more than 8% and hit a new all-time low when it was trading near US$ 0,101. Since the peak recorded in February 2025, the asset has already accumulated a decline of more than 96,5%, even after recent updates announced by the project team.
Another negative highlight was the token LAB, which suffered one of the biggest losses in the market over the last 24 hours. The cryptocurrency plunged more than 80%, moving to trade below US$ 2,30. The tokens PUMP, BEAT and JUMP also appeared among the assets with double-digit losses.
The main altcoins followed the downward move. The Ethereum (ETH) and BNB fell more than 2%, while XRP, Solana (SOL), HYPE and Dogecoin (DOGE) recorded losses between 4% and 5%. Meanwhile Cardano (ADA), NEAR, XLM and CC saw declines of more than 5% over the day.
In the opposite direction, the Zcash (ZEC) remained among the few cryptocurrencies gaining value after news involving its founder, Zooko Wilcox-O'Hearn.
As a result of the broad correction, the total market capitalization of cryptocurrencies shrank by approximately US$ 50 billion in just 24 hours, falling below the mark of US$ 2.2 trillion, as investors follow geopolitical developments and their impacts on digital assets.
Trader analysis points to the risk of further drops for Bitcoin
In trader Lennaert Snyder's view, Bitcoin's new pullback reinforces the asset's difficulty in breaking above the US$ 64 thousand region, which he considers an important selling zone. According to the analyst, BTC's inability to break the previous day's high and the new rejection at this level strengthen the more bearish short-term outlook for the cryptocurrency.
Snyder said he had already withdrawn his buy orders in this region because another test of resistance would be a sign of market weakness. In his analysis, those who opened short positions near US$ 64 thousand could take some profits at this moment. As the trader noted:
"The BTC is falling again after being rejected in the selling zone at US$ 64 thousand."
The specialist also noted that the release of the minutes from the meeting of the Federal Reserve (FOMC Minutes) could increase volatility during the trading session, which is why he chose to reduce his exposure until the market absorbed the new economic information.
Even while maintaining a bearish view for the short term, Snyder identified important support levels. According to him, the range of US$ 60.3 thousand It is still an interesting point for a reaction from buyers, although I see this move only as a bounce within the downtrend.
If this support is broken, the trader believes that the next relevant region will be near US$ 58,8 thousand a level that coincides with the monthly open and may attract investors’ interest again.
Despite these possible recovery points, his main expectation remains negative. Snyder says the market may still seek new lows below US$ 57,8 thousand before forming a more consistent base for a longer-lasting recovery. In his words:
"My thesis continues to be that we need to register new lows below US$ 57,8 thousand, therefore all buy zones also serve as take-profit targets for short positions."
The analyst’s read reinforces the perception that, as long as Bitcoin remains below the resistance of US$ 64 thousand, the market tends to maintain a cautious bias, especially in the face of the influence of macroeconomic events and rising geopolitical tensions.