Leading cryptocurrencies slumped alongside markets on Tuesday, while gold surged to fresh highs, as the U.S. government shutdown entered its seventh day.
Market Cools Down
Bitcoin fell below $121,000, ending a week-long rally that had sent it to record highs. Trading volume surged 15% in the last 24 hours, suggesting high selling pressure.
Similarly, Ethereum retreated from the mid $4,700s to below $4,500, while volumes jumped 60%. XRP and Solana also recorded sharp declines.
In the past 24 hours, 167,851 traders were liquidated, with total cryptocurrency liquidations at $621.29 million, according to Coinglass. Nearly $470 million in bullish longs were wiped out.
Bitcoin’s open interest fell 3.33% to $90.81 billion, while more than 50% of Binance futures traders remained bearish on the asset, according to the Long/Short ratio.
The market’s “Greed” sentiment weakened, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $4.16 trillion, contracting 2.58% in the last 24 hours.
Stocks Fall, Gold Hits Record High
Stocks retreated from record highs on Tuesday. The S&P 500 slid 0.38% to close at 6,714.59, snapping a 7-day winning streak. The tech-heavy Nasdaq Composite dipped 0.67% to end at 22,788.36. The Dow Jones Industrial Average dropped 91.99 points, or 0.2%, to end at 46,602.98.
The tech stocks were pressured as shares of Oracle Corp. (NASDAQ:ORCL) fell following reports suggesting that the company is facing financial challenges in renting out Nvidia Corp. (NASDAQ:NVDA) chips.
Meanwhile, gold prices rose to a new high of $4,000 per ounce on Tuesday. The federal government shutdown entered its seventh day.
Risk-On Switch Incoming?
Widely followed cryptocurrency analyst and trader Michaël van de Poppe was optimistic about new all-time highs for Ethereum, noting a potential reversal in the ETH/BTC ratio after a normal correction.
Van De Poppe also linked it to gold’s “insanely parabolic” trajectory, predicting a “big risk-on switch” once the precious metal falls.
Ali Martinez, another well-known trader, said that $4,000-$4,800 has been a “danger zone” for ETH since 2021, with each touch resulting in a correction.
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