Leading cryptocurrencies cracked alongside stocks on Tuesday, after a sharp decline in chip-related stocks cast doubts on the sustainability of the AI rally.
Crypto Market Sinks Deeper
Bitcoin dropped below $62,000 amid heavy selling, while Ethereum bulls failed to defend the support at $1,700. XRP and Dogecoin recorded sharp declines as well.
Over $560 million was liquidated from the cryptocurrency market in the last 24 hours, with $490 million in bullish long positions wiped out, according to Coinglass data.
Roughly $350 million in Bitcoin longs were at risk of liquidation if the price dropped to $60,000.
Bitcoin’s open interest fell 1.39% over the last 24 hours. Whale and retail derivatives traders, meanwhile, bought the dip, adding more long exposure to $BTC.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.15 trillion, following a decline of 1.63% from the previous day.
Stocks In Red After Chip Stocks Tumble
Stocks faced heavy sell-offs on Tuesday. The Dow Jones Industrial Average fell 45.87 points, or 0.09%, to close at 51,666.84.The S&P 500 slid 1.44% to end at 7,365.46,while the tech-focused Nasdaq Composite declined 2.21% to close at 25,587.04.
Why This Support Is Significant For $BTC
Ali Martinez, a widely followed cryptocurrency analyst and trader, said that Bitcoin must hold the support at $60,587 to “maintain the current trend.”
Citing on-chain data, the analyst highlighted the $60,000–$63,000 range as one of the largest volume clusters, where over one million $BTC changed hands.
Michaël van de Poppe, another well-known cryptocurrency commentator, stated that Ethereum is currently stuck in the middle and needs to break above $1,800 to “regain momentum.”
“If the markets break back into that range, it can move quickly to $2,500+,” Van De Poppe said. “Other than that, it’s very likely to see retests at $1,385 and/or $1,505.”
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