Cryptocurrency Prices Slide as Traders Seek Safety in Stablecoins
Cryptocurrency prices continued to slide lower on Tuesday as traders opted to stay on the sidelines in the safety of stablecoins amid the increasingly bearish price action across financial markets. The ongoing pressure on stocks, driven by concerns over Treasury yields, also impacted the crypto market.
Market Performance
The S&P and Dow finished the day lower, down 0.34% and 0.57% respectively, while the Nasdaq managed to eke out a small gain of 0.06%. Bitcoin (BTC) traded near support at $26,000 throughout the morning session but experienced a minor sell-off in the afternoon, dropping to a daily low of $25,725 before rebounding above $25,800.
Expert Analysis
Technical analysts point towards a bearish outlook for Bitcoin, with the formation of a double-top pattern on the BTC chart and declining volume. There are concerns that a breakdown below $25,000 could lead to a prolonged period of consolidation in the $19,000 – $22,000 range. Traders are advised to monitor the neckline at $24,800 for potential bullish support.
Market Movements
Most tokens in the top 200 experienced declines as investors adopted a risk-off approach. However, SafePal (SFP) and aelf (ELF) stood out with gains of 13% and 8% respectively. Among the losers were UniBot (UNIBOT) with a decline of 16%, followed by Livepeer (LPT) and Frax Share (FXS) with decreases of 7% each.
Market Cap and Dominance
The overall cryptocurrency market cap currently stands at $1.04 trillion, with Bitcoin maintaining a dominance rate of 48.8%.
