The three major stock indices all posted gains on Tuesday, causing bitcoin to reclaim $80K, during early trading, but the cryptocurrency had already slid under $77K at the time of reporting.
Overview of Market Metrics
Bitcoin is currently priced at $77,041, reflecting a 1.6% drop over the past 24 hours and an 9.4% decline over the last 7 days, according to data from Coinmarketcap.
The flagship cryptocurrency traded within a narrow 24-hour range of $76,814 to $80,823, a relatively tight band that suggests indecision among market participants. Volume tells a similar story, 24-hour trading volume plunged by 50.45% to $48.36 billion, signaling that fewer traders are actively positioning in this period of uncertainty.
Despite the pullback, the asset still commands a market capitalization of $1.55 trillion, which is down just 0.21% since yesterday, highlighting a degree of resilience amid broader market weakness.
Bitcoin’s dominance over the crypto market slipped to 63.34%, down 0.26% over 24 hours, as some investors pivoted away from BTC, though altcoins continue to struggle even more in relative terms.
In the derivatives market, futures open interest dropped slightly by 0.23% to $50.51 billion, reflecting a minor de-risking by traders. However, liquidation data from Coinglass shows $5.93 million in total liquidations over 24 hours, with a lopsided $5.23 million in long positions getting wiped out, compared to just $701,120 in shorts. The imbalance suggests bullish traders betting on a near-term recovery have been caught off guard by continued downward pressure.
With bulls licking their wounds and trading activity cooling, the short-term outlook on bitcoin’s price remains cautious.
Markets Bounce Back, but for How Long?