Bitcoin held above the $66,000 level while Ethereum, XRP, Cardano and Chainlink maintained recent gains, as on-chain data suggests improving market sentiment but also an increasing risk of short-term profit-taking. The recovery follows softer U.S. inflation data, improving risk appetite and renewed demand for spot Bitcoin ETFs.

Not In Easy 'Buy Fear' Zone

Santiment data noted on July 21 that the 30-day Market Value to Realized Value (MVRV) ratio for Bitcoin, Ethereum, Cardano, XRP and Chainlink has moved back above the neutral level. The shift means traders who accumulated those assets over the past month are, on average, back in profit following Bitcoin's recovery above $65,000. However, the analytics firm cautioned that positive MVRV readings historically make markets more vulnerable to profit-taking as recently profitable holders become more willing to sell. "The setup isn't overheated yet, but it's no longer the easy 'buy fear' zone either," Santiment noted.

Whale Selling Pressure Continues To Ease

CryptoQuant reported on July 21 that its Momentum Whale Inflow Ratio has fallen into negative territory for the first time this year after remaining positive for roughly five months. The metric tracks whale inflows to exchanges, where increased deposits are often associated with potential selling activity. According to CryptoQuant, the negative reading suggests large holders are sending fewer Bitcoin to exchanges, indicating easing selling pressure and a reduction in near-term bearish momentum. The firm said declining whale inflows could support a short-term recovery if the trend persists.

XRP Breakout Targets $1.30

Crypto analyst Ali Martinez said XRP has confirmed a technical breakout after clearing a key resistance level, adding that the next major upside target is $1.30. The move comes as XRP joins Bitcoin and several large-cap cryptocurrencies in returning to positive 30-day MVRV territory, signaling improving short-term profitability for recent buyers.

Leading cryptocurrencies traded mixed on Monday as escalating geopolitical tensions between the U.S. and Iran curbed investors’ risk appetite. The global cryptocurrency market capitalization stood at $2.30 trillion, representing a 0.66% increase over the last 24 hours. More than $245 million in cryptocurrency positions were liquidated over the past 24 hours, with bearish shorts taking the heaviest losses, according to Coinglass data.

Cryptocurrency Performance

Bitcoin traded in the $65,000 area through most of the day as 24-hour volume increased 92%. Ethereum continued to face strong resistance around the $1,915, while XRP edged higher. Bitcoin’s open interest rose 2.20% over the last 24 hours. "Extreme Fear" sentiment prevailed in the market, according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours)

Market Context

Cryptocurrency-related stocks also fell, with Strategy Inc. (NASDAQ: MSTR) and Bitmine Immersion Technologies Inc. (NYSE: BMNR) closing up 3.13% and 5.99%, respectively. Stocks closed in the red on Monday. The Dow Jones Industrial Average slid 307.16 points, or 0.59%, to close at 51,839.26. The S&P 500 declined 0.19% to close at 7,443.28, while the tech-heavy Nasdaq Composite fell 0.05% to end at 25,508.07.

The U.S. military said it initiated a new round of strikes against Iran even as President Donald Trump said via his Truth Social that Iran would pay for the deaths of American soldiers "many times over." This development comes after Iranian Foreign Minister Seyed Abbas Araghchi said that the U.S. would lift its naval blockade of the Strait of Hormuz and begin releasing frozen Iranian assets.

Analyst Commentary

Blockchain analytics firm Santiment noted that the average short-term holders of Bitcoin and Ethereum were in "slight profit," with the 30-day Market Value to Realized Value back above 0%. "Positive MVRVs tell us the rebound is real, while also reminding bulls that short-term gains can invite faster selloffs if momentum starts cooling," the research firm added.

Ali Martinez, a widely followed cryptocurrency analyst and trader, stated that Ethereum must hold $1,850 as support to target the next upside at $2,300.