On Tuesday, major cryptocurrencies like Bitcoin and Ethereum showed lackluster performance with Bitcoin facing resistance at $95,500. More than $180 million was liquidated from the market, largely impacting long positions. Analysts remain optimistic that Bitcoin could soon reach $98,300 amidst a favourable trade deal announcement by Commerce Secretary Howard Lutnick.
On Tuesday, the cryptocurrency scene was rather muted, coinciding with a positive uptick in stock markets. Bitcoin stayed flat, grappling with resistance just above the $95,500 mark, even as trading volume slipped nearly 15%. Ethereum also struggled, hovering around the early $1,800 levels, marked by a 9.63% downturn in trading activity. Across the board, more than $180 million was liquidated from the cryptocurrency market within the day, predominantly from long positions totaling around $120 million.
Interestingly, Bitcoin short positions worth over $630 million now face liquidation risks if the currency manages to breach the $98,000 threshold. Open Interest for Bitcoin dipped by 2.27%, whilst data indicated that a significant majority—over 57%—of Binance traders were betting against the asset. Meanwhile, crypto sentiment remained firmly in “Greed”, as reported by the Crypto Fear and Greed Index.
In terms of market cap, the global crypto valuation clocked in at $2.96 trillion, marking a slight 0.74% decrease over the previous 24 hours. Contrastingly, stock markets advanced. Notably, the Dow Jones increased by 300.03 points, or 0.75%, closing at 40,527.62. The S&P 500 also rose 0.58% to reach 5,560.83 while the Nasdaq Composite added 0.55%, finishing at 17,461.32.
A key moment came when U.S. Commerce Secretary Howard Lutnick announced a definite trade agreement with an undisclosed country, building on previous comments from Treasury Secretary Scott Bessent regarding potential trade negotiations with India.
Amazon faced a bit of turbulence just ahead of its earnings report, as its plans to display tariffs on products received pushback, with the White House branding the move “hostile”. However, the stock managed to recover most of its losses by the end of trading.
In the analysis space, Greg Miller, a well-regarded observer in the cryptocurrency world, expressed optimism about Bitcoin’s upward trajectory. He noted that Bitcoin is exhibiting a strong positional hold and projected that a push towards $98,300 could occur sooner than anticipated. Another analyst, Ali Martinez, echoed this sentiment, predicting a bull market following a ‘golden cross’ in Bitcoin’s market metrics, specifically between the Market Value to Realized Value (MVRV) Ratio and its 365-day Simple Moving Average (SMA). MVRV is a key measurement that evaluates a cryptocurrency’s market value in relation to its realised value, offering insight into potential price movements.
The developments in both cryptocurrency and stock markets are closely monitored by investors, as they continue seeking opportunities within an ever-volatile financial landscape. Analysts are urging traders to stay informed with alerts and insights regarding investment trends, which may greatly impact decision-making in the near term.
