The cryptocurrency market slid further Tuesday as market sentiment remained weak amid regulatory potshots taken at cryptocurrency entities.
What Happened: Bitcoin, the market bellwether, sank to $62,000, following a 1.63% drop in the last 24 hours.
The price drop eroded more than $167 million worth of active positions from the market in the last 24 hours, with long liquidations amounting to 77% of the total.
The second-largest cryptocurrency, Ethereum, which shed 2.15% in the 24 hours, saw $43.48 million in liquidations, followed by Bitcoin with $40.80 million in its positions getting recked.
Despite the negative price action, the number of traders taking long positions on Bitcoin surged in the last 24 hours, exceeding the ones shorting the coin by a ratio of 1.11:1.
The negative sentiment has lingered after brokerage firm Robinhood Markets Inc
was slapped with a Wells Notice from the SEC, the latest cryptocurrency company to get on the radar of U.S. regulators.
The global cryptocurrency market cap now stands at $2.3 trillion, declining by 1.84% in 24 hours.
To the contrary, stocks moved higher on Tuesday. The Dow Jones Industrial Average moved 31.99 points to the north, or 0.08%, to close at 38,884.26. The S&P 500 increased 0.13% to end the trading session at 5,187.70 points. The tech-heavy Nasdaq Composite, however, traded in the red, sinking 0.1% to 16,332.56 points when the markets closed.
The yield on the 10-year Treasury was up by less than 1 basis point to 4.63% as of 9:30 p.m. EDT.
Wall Street has been optimistic since the softer-than-expected U.S. jobs data fueled hopes of a more dovish monetary policy from the Federal Reserve.
Cryptocurrency analyst Michael van de Poppe talked about the struggling state of the altcoin market since spot Bitcoin ETF approvals.
“Altcoins are still within their longest bear market since existence. The likelihood of a longer than four-year cycle increases day-by-day,” the analyst said.
Kevin, another well-known cryptocurrency researcher and trader, echoed similar conclusions.
“I have posted everything I can find numerous times and nothing has changed in months there’s no money flowing around Crypto. I’m not gonna feed you guys the same content over and over again and I cant resort to posting 1HR time frame non sense. Call me when something happens.”
