The crypto market is undergoing a slump as geo-political tensions between the U.S. and Europe stay intensified around Greenland. Bitcoin on Tuesday registered a small price growth of 0.21 percent over the last day. The most expensive crypto asset was trading at $87,900 at the time of writing.
Ether joined BTC to rope-in a gain of 0.67 percent to trade at $2,915, showed CoinMarketCap on Tuesday.
In conversation with Coin Headlines, market analysts said that fears around a possible U.S. government shutdown did lead to a brief risk-off move, but the narrative is now improving as the dollar weakens to a four-month low, driving flows back into assets like Bitcoin and gold.
“Markets are now focused on key events this week, including big-tech earnings and the Fed’s policy update. While rates are expected to remain unchanged, the Fed’s guidance will be crucial. For BTC, trading near $88,500, a move above $90,000 could strengthen the bullish setup, with $86,000 acting as a solid support,” said Akshat Siddhant, Lead Quant Analyst, Mudrex
Altcoins showed a mixed movement on the price chart on Tuesday. XRP, Tron, Stellar, Hedera, Shiba Inu, and Toncoin clocked minor losses over the last day.
Meanwhile, assets including BNB, Solana, Dogecoin, Cardano, and Bitcoin Cash joined BTC and ETH in roping-in small gains.
The overall crypto market cap rose by 0.24 percent over the last day, showed CoinMarketCap. The valuation of the market presently stands at $2.98 trillion.
Analysts pointed out that political gridlock in Washington has lifted risk premiums across global markets, with Polymarket pricing shutdown odds near 75 percent.
“Major tokens such as Solana, Avalanche, and Polygon declined between four percent and seven percent, while meme and small-cap coins posted steeper drawdowns amid thinning liquidity,” Sathvik Vishwanath, Co-Founder and CEO, Unocoin told Coin Headlines.
Market liquidations hit $268.32 million in the last 24 hours with over 82,490 traders having been liquidated, showed data by CoinGlass.