Bitcoin tumbles toward $62,000 as altcoins sell off; Cardano gains

Bitcoin fell sharply from above $65,000 toward $62,000 in late July, erasing substantial gains within hours. The broader crypto market contracted accordingly, with total capitalization sliding to approximately $2.22 trillion by August 2, while altcoin capitalization dropped to around $964 billion. Ethereum, XRP, Solana and HYPE all posted weekly losses.

Multiple pressures converged to trigger the decline. The Federal Reserve's decision to hold rates steady offered little support for speculative assets, while a risk-off sentiment emerged as geopolitical tensions in the Middle East deterred leveraged positioning. Policy uncertainty added to caution, as the CLARITY Act cleared the Senate Banking Committee but faced an uncertain path to passage before the August recess due to limited calendar space and unresolved disputes.

Security concerns resurfaced when reports linked a Coldcard vulnerability to the theft of approximately 594 BTC from hundreds of wallets, further dampening confidence. Traders now assess whether selling pressure can deepen further amid policy uncertainty, geopolitical risk, wallet-security concerns, and mounting on-chain losses.

Cardano emerged as a clear outlier, gaining 15.3% on a weekly basis while large-cap tokens weakened. ADA traded near $0.1885, up 9.6% from the previous close. However, this strength did not erase Cardano's longer-term decline—according to analyst CryptoPatel, ADA remains 96% below its 2021 peak and 89% below its December 2024 swing high.