Bitcoin and Ethereum Struggle Amid Tech Stocks Sell-Off
- Bitcoin fell to an intraday low of $105,157.40 as tech stocks declined.
- Ethereum also faced a downturn, trading around $2,400 amidst high liquidity.
- The total liquidations reached $258 million indicating strong sell pressure.
Bitcoin Faces Struggles Amid Tech Stock Volatility
Bitcoin prices took a hit on Tuesday as both cryptocurrencies and tech stocks reacted to news from Capitol Hill. The Senate’s recent passage of President Trump’s hefty tax-and-spending bill sent ripples through the financial markets, forcing Bitcoin down to an intraday low of $105,157.40. Trading volume surged over 6% within 24 hours, indicating a strong wave of selling pressure on the flagship digital currency.
Ethereum Declines as Liquidations Mount
Ethereum, on the other hand, joined Bitcoin in its downward trajectory, trading around the $2,400 mark. This drop contributed to erasing approximately $220 million in bullish longs, culminating in total liquidations of around $258 million. Furthermore, there’s a looming threat for those holding short positions: over $500 million worth could be liquidated should Bitcoin rally to $109,000, not an unrealistic possibility given the crypto’s volatile nature.
Market Sentiment Remains Complex Despite Struggles
Market sentiment appears to lean towards ‘Greed’, according to the Crypto Fear & Greed Index, despite the falling prices. The overall cryptocurrency market cap saw a contraction of about 2.07%, totaling around $3.25 trillion. Meanwhile, stocks started mixed with the Dow Jones Industrial Average gaining ground, climbing 400.17 points or 0.91%, while the S&P 500 dropped slightly and the tech-heavy Nasdaq Composite experienced a slump, largely due to downturns in major players like Tesla and Nvidia. Traders are now speculating on potential price movements amid this unpredictable climate, and it’s hard to ignore the impact of the tax bill, which could stack more debt.
In brief, Bitcoin and Ethereum are experiencing significant pressure following the Senate passing Trump’s controversial bill, with market reactions indicating a worrying trend. Analyst Ali Martinez’s bearish signal for Bitcoin raises eyebrows, hinting at a potential decline below $40,000. Meanwhile, traders remain watchful of liquidations and sentiment shifts, setting the stage for a tumultuous trading landscape in the crypto world.
