Bitcoin fell sharply on Tuesday, giving up all gains made since President Donald Trump’s election victory, as selling pressure remained intense following heavy liquidations over the weekend. Ongoing uncertainty surrounding U.S. monetary policy further weighed on sentiment.
The world’s largest cryptocurrency was last down 4.2% at $74,699.9 by 15:12 ET (20:12 GMT), marking its lowest level since early November 2024. Prices touched an intraday low of $73,004.3, leaving Bitcoin down roughly 59% from its record high and firmly entrenched in bear market territory.
Menno Martens, a crypto specialist and product manager at VanEck, said the market is simply entering another familiar phase of the cycle.
“There’s no question that this is a bear market,” Martens told Investing.com, noting that the current downturn differs from previous ones due to growing geopolitical and macroeconomic influences, particularly developments in the United States.
He explained that the path of this cycle does not mirror past bull and bear markets exactly, largely because of these new external factors. However, Martens emphasized that the broader outlook remains unchanged, adding that VanEck continues to maintain a long-term perspective despite the current bearish conditions.
Bitcoin weighed down by heavy liquidations and Trump’s Fed pick
The sharp sell-off in cryptocurrencies over the weekend was fueled by widespread liquidations of leveraged positions, underscoring the heavy speculative buildup that had accumulated during last year’s rally. Data from derivatives tracking firms showed that crypto positions worth several billion dollars were wiped out in a short span, with long trades accounting for most of the forced closures.
Thin market liquidity further amplified volatility, allowing relatively modest price moves to trigger cascading liquidations.
Investor sentiment has also been dampened by broader macroeconomic uncertainty. Markets are weighing the implications of Kevin Warsh’s nomination as the next chair of the U.S. Federal Reserve, prompting a reassessment of the outlook for interest rates.
Warsh is broadly perceived as leaning toward a more hawkish policy stance, stoking concerns that tighter financial conditions could persist for longer.
Separately, the release of January’s closely watched U.S. employment report—originally scheduled for Friday—has been delayed due to a partial government shutdown, according to the Bureau of Labor Statistics.
White House crypto meeting ends without agreement on stablecoin yields
The cryptocurrency industry and major U.S. banks remain divided over how to regulate stablecoin yields following a White House meeting, underscoring ongoing hurdles to advancing long-delayed crypto legislation, according to media reports.
Executives from crypto companies, representatives from large banks, and government officials gathered in Washington to discuss market-structure rules, but made little headway on the key question of whether stablecoin issuers should be permitted to offer yield-like returns.
Banks have warned that yield-bearing stablecoins could accelerate deposit outflows and threaten financial stability, while crypto firms argue that such features are essential for innovation, growth, and maintaining competitiveness.
Crypto prices today: altcoins rebound as Polygon surges 10%
Most altcoins also moved lower on Tuesday.
Ethereum, the world’s second-largest cryptocurrency, fell 4.9% to $2,242.43, while third-ranked XRP declined 3.6% to $1.58.
Solana dropped 4.1%, and Cardano eased 1.8%.
Among meme tokens, Dogecoin slipped 2.1%, while the $TRUMP token fell 1.4%.
Sources: Anuron Mitra
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