Bitcoin (BTC) was nearing the $85,000 mark during European trading hours on Tuesday, as traders largely anticipate the outcomes of the U.S. tariffs set for Wednesday.
Dogecoin (DOGE) and Cardano (ADA) surged over 7%, leading the modest gains among major cryptocurrencies, while ether (ETH), XRP, Solana’s SOL, and BNB Chain’s BNB increased by nearly 5%.
According to CoinGecko data, the overall market capitalization fell by 3%, with the broad-based CoinDesk 20 witnessing a 3% uptick in the past 24 hours.
These movements come amidst a broader risk-off sentiment influencing the markets, as U.S. equities faltered — the S&P 500 recorded a 3% decline last week, its most significant drop since September 2023, leading to a flight towards safe-haven assets like gold, which reached new highs early Tuesday.
The impending tariffs, along with a wave of U.S. economic and labor reports from the past month, have created a somber atmosphere in the crypto market. Augustine Fan, head of insights at SignalPlus, noted the absence of fresh catalysts — particularly the lack of substantial ETF inflows — and indicated a market lacking conviction as it wraps up a tumultuous quarter, which concluded with an 11% loss for Bitcoin and the steepest decline for the S&P 500 since Q2 2022.
https://x.com/Barchart/status/1906821431352029565
In the futures market, speculative positions on Bitcoin via the CME have turned notably bearish, marking a stark shift from the bullish exuberance seen in January, according to Fan.
“It’s important to remember that positioning data reflects market conditions and isn’t necessarily a cue for a tradeable setup,” Fan stated. “While the catalysts for a sustained rally are currently elusive, we anticipate that any bullish movement could be sharp given the significant short positions at this time.”
However, signs of resilience are evident among long-term holders. Glassnode data reveals that holders with 3-6 month positions are experiencing growing profits and trading at their lowest levels since June 2021 — suggesting conviction rather than panic selling.
Recent large investors, or ‘new whales’, have also shown a tendency to hold their positions, contributing to the stability of Bitcoin’s price floor, as per Glassnode data.
https://x.com/glassnode/status/1906713577471234255
Meanwhile, Jupiter Zheng, a partner at HashKey Capital’s Liquid Fund and Research, described the tariff delays and economic data influx as a short-term hurdle.
“This dip is primarily driven by risk-off sentiment,” Zheng mentioned in a Telegram message to CoinDesk. “We maintain a long-term optimistic outlook, as more institutions begin to adopt crypto, while regulators worldwide develop new policies to foster adoption.”
