Broader cryptocurrency markets saw declines over the past 24 hours, with total market capitalization dropping 2.01% to $3.17 trillion.
| Cryptocurrency | Gains +/- | Price (Recorded at 8.15 p.m. ET) |
| Bitcoin BTC/USD | -1.23% | $97,104.13 |
| Ethereum ETH/USD | -1.90% | $$2,798.85 |
| Dogecoin DOGE/USD | -2.21% | $$0.259 |
What Happened: Bitcoin briefly dipped below $97,000, touching a low of $96,174.83, while other major altcoins also faced downward pressure. The pullback follows recent remarks from Federal Reserve Vice Chair Philip Jefferson, who urged caution regarding interest rate cuts in the current economic environment.
Jefferson stated Tuesday that the central bank should be careful when adjusting interest rates amid economic uncertainty. His comments aligned with the Federal Open Market Committee's recent decision to maintain the federal funds rate at 4.25% to 4.5%, according to a CNBC report. The Fed has previously cut rates by a total of one percentage point over three meetings after aggressive hikes to combat inflation.
Top Gainers (24-Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 8.15 p.m. ET) |
| OFFICIAL TRUMP (TRUMP) | +6.82% | $18.77 |
| FTX Token (FTT) | +5.24% | $2.04 |
| Monero (XMR) | +4.18% | $229.48 |
Traditional markets painted a mixed picture amid crypto's pullback. The Dow Jones Industrial Average rose 317.24 points, or 0.71%, to close at 44,873.28, while the S&P 500 gained 0.39% to reach 6,061.48. The tech-heavy Nasdaq Composite edged up 0.19% to 19,692.33. Meanwhile, Dow futures saw modest movement, rising 55.00 points in after-hours trading.
Market sentiment remains mixed, with the Crypto Fear and Greed Index at 49, signaling a neutral stance.
In the past 24 hours, 88,973 traders were liquidated, with total liquidations amounting to $185.46 million, according to CoinGlass.
While Bitcoin struggled, Ethereum saw increased interest following social media commentary on from Eric Trump on Tuesday, who suggested on X that it was a “great time to add $ETH.” Altcoins continued to show volatility, with Dogecoin trading lower.
Analyst Notes: Analyst Rekt Capital highlighted on X that previous altcoin cycles gained momentum when Bitcoin's dominance rejected the 71% level.
Separately, cryptocurrency analyst Michaël van de Poppe provided a long-term bullish outlook, suggesting that Bitcoin could reach $500,000 and Ethereum $20,000 in an extended bull cycle. He compared the current market setup to previous speculative booms, including the dot-com era and the 2017 crypto surge, emphasizing institutional adoption and government support as key drivers.
Van de Poppe also pointed to macroeconomic shifts that could impact crypto, including potential devaluation strategies by China and increased institutional involvement in Bitcoin. He noted that the U.S. government appears increasingly supportive of digital assets, with financial institutions expanding custody services and regulatory attitudes shifting toward broader adoption.
Despite the recent bearish sentiment, he argued that altcoins remain undervalued and that the long-term crypto cycle still has room for upside movement. “The current sentiment of the markets is ultra bearish as the biggest daily capitulation in the history of the crypto markets has been taking place,” he wrote.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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