The crypto market is reeling under losses amid the ongoing geopolitical tensions and the fluctuating prices of oil and gold. Bitcoin on Tuesday plunged to the price point of $66,230 after clocking a drop of nearly two percent over the last day. The asset was hovering over the $68,000 mark on the previous day but failed to hold onto the momentum.
Market analysts said multiple factors contributed to pulling Bitcoin down. These include Strategy’s pause in purchasing a new batch of BTC and Fed chair Jerome Powell’s recent remarks on tariff-driven inflation and geopolitical risks leading to a spike in liquidations and short-term imbalance.
“While on-chain data shows 48.5 percent increase in demand from long term holders, the price action has yet to fully reflect this accumulation. For the bullish structure to strengthen, Bitcoin needs to reclaim the $71,000 resistance, while the $65,000 level continues to act as a key support,” said Akshat Siddhant, Lead quant analyst, Mudrex.
Ether price also tumbled by nearly two percent over the last day to trade at $2,021.
“Ethereum shows relative weakness, facing resistance at $2,080–$2,100. A sustained breakout above these levels is required to shift structure bullish; otherwise, downside risk remains,” said Riya Sehgal, Research Analyst, Delta Exchange.
The policy signals from the U.S. The Federal Reserve remains key for liquidity, Sehgal noted. She added that while the inclusion of crypto in the U.S. 401(k) plans points to long-term institutional adoption, the next phase of the FTX creditor distributions and protocol upgrades may infuse near-term market volatility.
BNB, XRP, Solana, Tron, and Dogecoin registered losses within the range of one percent to four percent. Cardano, Chainlink, Monero, Canton, Stellar, and Litecoin registered upto two percent in losses in the last 24 hours. For Hyperliquid and Hedera, losses hit five percent each bringing their values to $35.88 and $0.08 respectively.
On the other hand, Bitcoin Cash and LEO rose in prices by around three percent each to trade at $467 and $10 respectively. Zcash also spiked in price by 6.2 percent to trade at $240 at press time.
With a majority of altcoins trading in dips, however, the overall crypto market cap fell by 1.48 percent. As of Tuesday, the valuation of the crypto market stood at $2.29 trillion, data by CoinMarketCap showed.
“On the macro front, markets are tracking crude oil above $105 and developments around the Iran conflict, both reinforcing a risk-off environment,” Sehgal noted.
Nearly 70,000 traders were liquidated in the last 24 hours with the total liquidations hitting $271.28 million, data by CoinGlass showed.