Leading cryptocurrencies and stocks fell on Tuesday after U.S. strikes on Iran and the revocation of the oil sanctions waiver rattled investors.
Crypto Rally Stalls
Bitcoin briefly topped $64,000 in the afternoon before surrendering its gains, as trading volume dropped sharply over the past 24 hours
Ethereum followed a similar trajectory, spiking to $1,800 before facing a sharp rejection back to the mid-$1,770 region. XRP and Dogecoin also traded in the red.
Nearly $300 million was liquidated from the cryptocurrency market in the last 24 hours, predominantly in bullish long positions, according to Coinglass data
Bitcoin’s open interest fell 2.90% over the last 24 hours. Binance derivatives traders, including both retail and whale investors, bought the dip, increasing their long exposure to the apex cryptocurrency.
The market slipped back into “Extreme Fear,” according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.2 trillion, with a slight 0.24% increase over the last 24 hours.
Stocks Retrace On Geopolitical Tensions
Stocks pulled back on Tuesday. The Dow Jones Industrial Average fell 130.76 points, or 0.25%, to close at 52,925.15. The S&P 500 slid 0.45% to end at 7,503.85, while the tech-heavy Nasdaq Composite declined 1.16% to settle at 25,818.69.
The slide followed the U.S. military launching a wave of strikes against Iran following attacks on commercial shipping in the Strait of Hormuz. The Treasury Department also revoked the sanctions waiver on Iranian oil exports, deeming Iran’s action “wholly unacceptable.”
On-Chain ‘Pain’ Pointing To Accumulation Opportunity
On-chain analytics firm CryptoQuant highlighted Bitcoin’s on-chain indicators at mid-year, noting that supply in loss exceeded 10 million, long-term holders were selling BTC at a loss and realized capitalization stood at $1.06 trillion.
“This level of on-chain pain is rarely observed and could suggest a potential medium- to long-term DCA [dollar-cost averaging] accumulation opportunity,” the research firm added.
Leading cryptocurrency analyst Ali Martinez said that Ethereum reclaiming $1,800 as an important support could clear the path for a move toward the next resistances at $1,980 and $2,079.
“Be aware that if sellers can protect this wall and force a rejection, the volume profile will thin significantly, leaving the next support baseline for ETH at $1,237,” the analyst cautioned.
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