Leading cryptocurrencies nosedived, on Tuesday, as the latest economic data poured cold water on interest rate-cut expectations.
| Cryptocurrency | Gains +/- | Price (Recorded at 8:15 p.m. ET) |
| Bitcoin (CRYPTO: BTC) | -4.76% | $97,056.00 |
| Ethereum (CRYPTO: ETH) | -7.59% | $3,402.50 |
| Dogecoin (CRYPTO: DOGE) | -9.40% | $0.3507 |
What Happened: Bitcoin fell to $96,200 late afternoon before dip-buying propelled the leading cryptocurrency up a few notches. This comes a day after it hit $100,000 after a gap of more than two weeks.
Ethereum's decline was steeper as the second-largest cryptocurrency lost nearly 8% of its value in 24 hours, plunging to $3,880.
Cryptocurrency liquidations hit $559 million in the last 24 hours, the highest since Dec. 20. More than $500 million in long liquidations was witnessed.
Top traders on Binance seemed to be buying the dip, as over 63% of them were long on Bitcoin, compared to 36% shorting the cryptocurrency.
About $555 million in short positions risked liquidation if Bitcoin rebounds to $100,000.
The slump cooled the sentiment from "Extreme Greed" to "Greed," according to the Crypto Fear & Greed Index.
Top Losers (24-Hours)
| Cryptocurrency | Losses | Price (Recorded at 8:15 p.m. ET) |
| dYdX (DYDX) | 12.33% | $1.43 |
| Pudgy Penguins (PENGU) | 11.88% | $0.03761 |
| Lido DAO (LDO) | 11.85% | $1.78 |
The global cryptocurrency market capitalization slumped 5.29% to $3.39 trillion in the last 24 hours.
Stocks faced heavy sell-offs on Tuesday. The Dow Jones Industrial Average lost 178.20 points, or 0.42%, to close at 42,528.36. The tech-heavy Nasdaq Composite slipped 1.89%, ending at 19,489.68, while the S&P 500 fell 1.11% to 5,909.03.
The decline followed a report revealing stronger-than-expected U.S. services sector growth, but a steep increase in the Prices Index stoked fears about inflationary pressures.
According to the CME FedWatch tool, traders priced in a 95% chance that the current interest rate range of 4.25%-4.50% would remain unchanged, up from 91% the day before.
While the equities sold off, yields on risk-free debt rose. The benchmark Treasury yield hit 4.69, its highest since late April.
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Analyst Notes: Popular cryptocurrency analyst Michaël van de Poppe weighed in on Bitcoin's latest correction.
"Couldn’t hold above $98-100,000 and we’re dropping down. Likely this is going to give a period of consolidation," the analyst predicted.
However, he added that once the correction ends, the entire market will rally, with altcoins witnessing the "strongest bounces."
Ali Martinez, a widely followed cryptocurrency expert, highlighted the significance of $97,000 as support for Bitcoin.
"If this support holds, BTC may rebound. A break below $97,000, however, could open the door for a dip to $92,000," Martinez projected.
Photo by CMP_NZ on Shutterstock
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