Bitcoin fell to $63,000 on Monday after a brief rally failed, wiping $80 billion from the cryptocurrency market and triggering approximately $700 million in liquidations. Ethereum dropped below $1,900, while several major altcoins recorded steeper losses. In a separate development, three users have filed a federal lawsuit against Apple, alleging that fake Sparrow Wallet applications on the App Store led to losses of about $1.835 million in Bitcoin.
Bitcoin Reverses Monday Rally
Bitcoin entered Monday after a volatile week that saw it climb from $63,750 to a monthly peak of $67,000 within 36 hours. Sellers blocked further gains at that level, pushing the asset down to $64,750 on Wednesday and $63,750 by Friday.
Weekend trading brought calmer conditions and a recovery toward $64,000. News of de-escalation in Middle Eastern conflicts then lifted Bitcoin to $65,600 twice on Monday, marking its highest price since Friday. However, the advance ended quickly as sellers drove Bitcoin down nearly $3,000 within hours. It touched $63,000 for the first time in 10 days, then recovered slightly to $63,400. Bitcoin remained 3% lower for the day, while its market value fell to $1.720 trillion. Its market dominance stayed below 57%, according to the figures provided.
Ethereum also surrendered Monday’s gains after reaching a two-month high of $1,980. A 4.2% daily decline pulled it about $100 lower. XRP and Solana posted similar losses, while HYPE fell 8% to $55. Zcash, Chainlink, Stellar, and Cardano also traded sharply lower.
Audiera’s BEAT led the declines with a 25% fall to $2.74. NEAR dropped 10%, while Shiba Inu and Pi each lost 9%. The total crypto market value declined from $2.330 trillion to $2.250 trillion in one day, removing about $80 billion from the market.
Apple Faces Sparrow Wallet Lawsuit
Three users filed a 54-page federal complaint against Apple on July 24 in California’s Northern District. They allege that fraudulent Sparrow Wallet applications reached the App Store and caused approximately $1.835 million in Bitcoin losses.
James Ramirez, Christopher Ellis, and Jalen Delgado brought the case under docket number 5:26-cv-07713. The public docket lists the complaint, a civil cover sheet, and an unexecuted summons. No judge has yet ruled on Apple’s responsibility for the alleged thefts, and the users’ claims remain untested in court.
Apple says it quickly removed the impersonating applications and terminated the developer accounts tied to them. The company had not filed a public response in the case. The complaint states that Delgado downloaded a spoof application around May 1, 2025, and lost about $120,000. Ramirez allegedly lost 7.4 BTC, valued near $875,000, after downloading another application on July 25. Ellis allegedly lost about $840,000 after using similar software around August 3.
Each user says the application requested a wallet seed phrase before moving Bitcoin to attacker-controlled addresses. Sparrow’s official website lists desktop downloads for macOS, Windows, and Linux. It currently offers no iOS application.
The case now raises a pivotal question: how much responsibility does an app store carry when a fake wallet reaches users? Entering a recovery phrase into malicious software gives attackers full control of the connected wallet.
Key Takeaways
- Bitcoin’s failed Monday rally erased $80 billion from the crypto market and pushed Ethereum below $1,900.
- Apple faces allegations that fake Sparrow Wallet apps caused $1.835 million in Bitcoin losses.
- Users should always verify official wallet platforms before entering recovery phrases or seed words.
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