The cryptocurrency market moved lower on Friday, July 31, as the total market capitalization slipped to around $2.18 trillion, marking a decline of approximately 0.58% in the past 24 hours.
The weakness came as investors shifted some capital back into traditional equities following a strong S&P 500 recovery. At the same time, Strategy’s updated Bitcoin strategy introduced fresh uncertainty among crypto traders. Despite these pressures, the decline remained limited as Bitcoin continued to trade relatively steadily.
1. Investors Shift Funds Back Into Stocks
A major factor behind today’s crypto pullback was renewed strength in the stock market. The S&P 500 climbed 1.66% on Thursday, recovering much of the previous session’s losses. This rebound may have encouraged some investors to move funds away from digital assets and back into equities, especially as month-end liquidity conditions tighten.
The broader crypto market indicator, TOTAL, struggled to maintain support above the $2.19 trillion mark. The level was lost on July 27 and has yet to be decisively recovered.
If TOTAL falls below the $2.15 trillion zone, traders may watch for further declines toward $2.11 trillion and $2.07 trillion. On the other hand, reclaiming $2.19 trillion could revive momentum toward the $2.26 trillion resistance area.
Market Catalyst: The S&P 500’s 1.66% recovery ahead of July’s close.
Important Level: TOTAL needs to regain $2.19 trillion for stability.
Risk Area: Losing $2.15 trillion could expose additional downside.
2. Strategy’s Bitcoin Selling Plans Add Pressure
Another factor weighing on sentiment is Strategy’s updated approach to Bitcoin accumulation. Following its Q2 earnings report, the company indicated it may sell Bitcoin when market conditions are favorable and will not automatically direct all new capital into BTC purchases.
Strategy says it will continue selling Bitcoin and no longer allocate all new capital to BTC purchases
Strategy said during its Q2 earnings call that it will continue selling Bitcoin when advantageous to replenish its USD reserve, fund preferred dividends and interest… pic.twitter.com/vkz6KGDxK9
— Wu Blockchain (@WuBlockchain) July 31, 2026
Bitcoin has remained relatively stable near $64,300, meaning the impact has not appeared immediately. However, the possibility of reduced buying support removes one of the market’s consistent sources of demand. Combined with investors rotating into stocks, the change could create additional caution as August begins.
Main Concern: A reduction in a major buyer’s activity could affect market confidence.
MemeCore (M) Faces Short-Term Pressure
Among individual tokens, MemeCore (M) recorded one of the largest daily declines, dropping nearly 10% over 24 hours to around $0.99. Despite the short-term weakness, the token remains approximately 24% higher over the past month, showing that meme-related assets had a strong July overall. However, M has declined roughly 13% during the past week.
From a technical perspective, MemeCore has been moving inside a downward channel since July 3. Earlier signs of decreasing selling pressure had raised expectations of a possible breakout.
That outlook changed after selling volume increased on July 30, marking the first notable rise since early July and suggesting that sellers may be returning.
For bullish momentum to return, M needs to break above the $1.02 and $1.13 resistance levels. A move beyond $1.21 could confirm a breakout toward $1.57.
Meanwhile, the $0.85 support area remains critical. A drop below this level could weaken the recovery setup and open the door toward a decline near $0.53.
Daily Move: M falls about 10%, while remaining up 24% monthly.
Volume Signal: Selling activity increased on July 30.
Key Breakout Level: Above $1.21 targets $1.57; below $0.85 signals weakness.
