Leading cryptocurrencies dived, while stocks closed at record highs on Tuesday as Middle East tensions remained elevated.
Bears Dominate Crypto Market
Bitcoin sank below $76,000, with trading volume soaring 76% in the last 24 hours. Selling pressure also increased for Ethereum, while XRP and Dogecoin stalled.
Over $300 million was liquidated from the cryptocurrency market in the past 24 hours, with $200 million in long position erased, according to Coinglass data.
Bitcoin’s open interest jumped 4% over the last 24 hours. An increase in Open Interest alongside a drop in the spot price typically indicates that short sellers are entering new positions, which in turn reflects high bearish sentiment.
“Extreme Fear” sentiment took over the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.54 trillion, following a contraction of 0.94% over the last 24 hours.
Stocks Jump To New Highs
Major indexes rallied to record highs on Tuesday. The S&P 500 spiked 0.61% to end at 7,519.12, while the tech-focused Nasdaq Composite climbed 1.19% to settle at 26,656.18, both notching new closing records.
The Dow Jones Industrial Average was the outlier, shedding 118.02 points, or 0.23%, to close at 50,461.68.
Why Bitcoin Needs To Break $80,000
Popular cryptocurrency analyst Michaël van de Poppe noted a sharp dip in Bitcoin’s volatility that is weighing on altcoins.
“I don’t think that this will stop, as long as Bitcoin remains within the range and isn’t volatile,” Van De Poppe stated. “If it breaks $80,000 –> we’ll see more strength on Bitcoin and liquidity flows back towards the main asset of the ecosystem.
Widely followed cryptocurrency analyst and trader Ali Martinez identified two critical weekly moving average levels that Ethereum should recapture to “turn bullish.”
“Reclaiming the 200-week SMA at $2,500. A clean break above the 50-week SMA at $3,100,” the analyst added.
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