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Leading cryptocurrencies fell on Tuesday as traders awaited key inflation data for clues on the Federal Reserve’s interest rate policy.
Crypto Market Sees Selling Pressure
Bitcoinslid below $78,000 as trading volume jumped nearly 50% in the last 24 hours. Ethereum‘s advance stalled at $2,500, while Dogecoin fell sharply following Monday’s jump.
Cryptocurrency-related stocks also fell, withStrategy Inc.(NASDAQ:MSTR) and Bitmine Immersion Technologies Inc.(NYSE:BMNR) closing down 4.40% and 0.80%, respectively. Strategymade no Bitcoin purchases last week
More than $250 million was liquidated in the cryptocurrency market over the past 24 hours, including $163 million in long positions, accordingto Coinglass data.
Bitcoin’s open interest rose 0.70% in the last 24 hours to $53.45 billion. A rise in open interest combined with a falling spot price typically signals a short buildup, meaning new sellers are actively entering the market.
Market sentiment leaned toward “Greed,” accordingto the Crypto Fear & Greed Index.
The global cryptocurrency market capitalization stands at $2.70 trillion after declining 0.36% over the past 24 hours.
Stocks Cool Down
Stocks started the holiday-shortened week in the red. The Dow Jones Industrial Averagefell 628.18 points, or 1.18%, to close at 52,786.07. The S&P 500 declined 0.58% to end at 7,673.52,while the tech-focused Nasdaq Composite closed 0.32% lower at 26,421.41.
Key inflation data is due this week, with the producer price index out Thursday and the consumer price index on Friday.
Traders are currently pricing in a 59% chance of a rate cut at next week’s Federal Reserve policy meeting, accordingto the CME FedWatch tool.
‘Strong Bullish Signal’
Ali Martinez, a widely followed cryptocurrency analyst and trader, said Bitcoin has reclaimed its “Warm Supply Realized Price,” interpreting it as a “strong bullish signal.”
The metric tracks the average acquisition price of Bitcoin that changed hands between a week and six months ago.
Martinez highlighted that the four prior major reclaims of this level preceded strong rallies, including 74% in October 2024 and 159% in October 2023.
On-chain analytics firm CryptoQuant noted that the Market Value to Realized Value indicator remains below Bitcoin’s 365-day moving average—a level that has historically marked a transition from “repair to expansion.”
CryptoQuant said reclaiming and holding the 365-day moving average remains a bull case, while a rejection at this level would signal weak aggregate profitability, keeping BTC in repair mode.
Photo Courtesy: Sodel Vladyslav on .com
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