In the last 24 hours, over $220 million in cryptocurrency positions were liquidated, predominantly affecting long traders, as reported by Coinglass.

Bitcoin’s open interest decreased by 2.20% in the same timeframe. A drop in open interest, when paired with a rise in prices, usually indicates that short sellers are covering their contracts to mitigate losses.

According to the Crypto Fear & Greed Index, the mood among investors is leaning towards “Greed.”

The total value of the global cryptocurrency market reached $2.96 trillion, reflecting a 0.30% increase in the past 24 hours.

Stocks Continue to Decline

The stock market experienced further losses on Tuesday. The Dow Jones Industrial Average fell by 131.59 points, or 0.26%, closing at 51,349.9. The S&P 500 decreased by 0.16% to finish at 7,670.84, while the Nasdaq Composite dipped 0.09%, landing at 26,797.54.

Bond yields fluctuated as discussions aimed at resolving the situation in Iran made limited headway.

Yields on 10-year Treasury notes rose to 5.29%, marking the highest level since 2007, and the 30-year yield surpassed 5.6%, reaching its peak since June 2002.

Is the Bitcoin Rally Losing Momentum?

According to on-chain analytics firm CryptoQuant, profit-taking in Bitcoin has surged to levels not seen since December 2024, suggesting a waning demand.

“The bull market remains strong, yet signs of weakness are appearing. The first support level to monitor is $80,000,” CryptoQuant noted.

Blockchain research company Santiment reported that wallets holding between 10 and 10,000 Bitcoin accumulated 41,025 $BTC over the last 10 days, raising their overall stake to 67.93% of the total supply.

Conversely, retail wallets with less than 0.01 $BTC have remained relatively stagnant since the price peaked at $87,000.

“This current divergence is promising, though it doesn’t ensure a price movement,” Santiment commented. “Such a combination has often preceded stronger upward movements in Bitcoin.”

Image Credit: Marc Bruxelle on Shutterstock.com

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