Bitcoin traded sideways around $76,800 on Tuesday as broader crypto markets lost momentum, with altcoins under pressure and WLFI extending its decline. Market participants are closely watching whether bitcoin can maintain a key level identified by Bitmine Chairman Tom Lee.
Price action remained muted, with bitcoin largely unchanged while ether edged down roughly 0.1% since midnight UTC. The lack of movement follows Monday’s pullback, where even a $2 billion bitcoin purchase by Strategy (MSTR) failed to trigger a recovery.
Attention is firmly on the $76,000 mark, which Tom Lee has described as a critical threshold for confirming a bullish trend if bitcoin closes the month above it. For now, the asset continues to hover just above that level.
Altcoins echoed bitcoin’s sluggish tone, with most assets in the CoinDesk 20 Index posting losses. Only SUI and NEAR managed modest gains during the session.
In traditional markets, risk sentiment softened as Nasdaq 100 and S&P 500 futures declined, while the U.S. Dollar Index moved higher. Meanwhile, crypto derivatives data pointed to increased engagement, with futures trading volume rising sharply over the past day. Open interest remained steady, and liquidations dropped significantly, indicating traders are repositioning rather than being forced out.
Zcash stood out for a third consecutive day with rising open interest, although recent metrics suggest sellers are becoming more aggressive. XRP also saw open interest climb to its highest level since October, but bearish signals dominate, potentially reflecting hedging activity linked to recent ETF exposure.
Cardano’s ADA showed a classic bearish pattern, with open interest hitting record highs even as prices extended losses—suggesting fresh short positions are building. Dogecoin also reflected the broader risk-off mood, recording the strongest seller-driven activity among major tokens.
Bitcoin and ether derivatives remained relatively stable overall, while options markets pointed to a calm outlook. Ether’s implied volatility dropped to a new yearly low, and bitcoin’s volatility held near subdued levels, indicating no signs of panic despite recent declines.
Macro conditions added another layer of caution, with U.S. Treasury volatility rising for a second straight session. Increased instability in bond markets can tighten liquidity, potentially weighing on risk assets like crypto.
Options data from Deribit showed a generally bullish positioning in bitcoin, though short-term indicators reveal continued demand for downside protection.
WLFI continued to slide after concerns surfaced about the financial health of its associated treasury firm, AI Financial, which warned it may not survive the year. The token has now lost a significant portion of its value since launch.
Elsewhere, INJ and QNT declined, while broader sentiment across speculative assets weakened. CoinMarketCap’s Altcoin Season Index dropped sharply, reflecting a shift away from higher-risk tokens.
Sector performance was broadly negative, led by DeFi, followed by computing and smart contract platforms, highlighting a cooling trend across the crypto market.
About The Author
More Stories
According to Bitwise, Hyperliquid’s HYPE token stands out as one of crypto’s most undervalued opportunities.
Bitcoin slides $5K in a matter of days, with ETF outflows and derivatives pointing to deeper losses
Revolut pushes Dogecoin adoption with launch of physical payment card