Bitcoin hovered around $76,800 on Tuesday as momentum across the crypto market cooled, with altcoins drifting lower and WLFI extending its losses. Traders are now focused on whether bitcoin can defend a key level highlighted by Bitmine Chairman Tom Lee.
Price action remained subdued, with bitcoin holding steady while ether slipped slightly by about 0.1% since midnight UTC. The muted tone follows Monday’s broader decline, where even a $2 billion bitcoin purchase by Strategy (MSTR) failed to spark a rebound.
The spotlight remains on the $76,000 threshold, which Tom Lee has identified as a decisive level for confirming a bull market if bitcoin manages a monthly close above it. For now, prices are hovering just above that line.
Altcoins largely mirrored bitcoin’s lack of direction, with most components of the CoinDesk 20 Index trading in the red. SUI and NEAR were the only tokens to post modest gains.
In traditional markets, sentiment leaned cautious as Nasdaq 100 and S&P 500 futures moved lower, while the U.S. dollar strengthened. In crypto derivatives, trading activity picked up, with futures volume climbing notably over the past 24 hours. Open interest remained stable, and liquidations fell sharply, signaling orderly repositioning rather than forced selling.
Zcash continued to stand out with rising open interest for a third straight session, though recent data shows a shift toward more aggressive selling. XRP also recorded a jump in open interest to multi-month highs, but bearish positioning dominates, suggesting traders may be hedging amid recent ETF-related flows.
Cardano’s ADA displayed a classic bearish setup, with open interest reaching record highs even as prices extended a multi-day decline—pointing to fresh short positions entering the market. Dogecoin also reflected a risk-off environment, showing the strongest seller-driven activity among major tokens.
Bitcoin and ether derivatives remained relatively stable overall, while options markets suggested a calm outlook. Ether’s implied volatility dropped to a new year-to-date low, and bitcoin volatility remained subdued, indicating that traders are not pricing in panic despite recent weakness.
On the macro side, rising volatility in U.S. Treasury markets added to the cautious backdrop. Higher bond market volatility can tighten financial conditions, potentially weighing on risk assets such as cryptocurrencies.
Options data from Deribit showed a broadly constructive positioning in bitcoin, though short-term indicators still point to demand for downside protection.
Meanwhile, WLFI declined further after concerns emerged about the financial health of its associated treasury firm, AI Financial, which warned it may not survive the year. The token has now lost a substantial portion of its value since launch.
Elsewhere, INJ and QNT also moved lower, while sentiment across speculative assets deteriorated. CoinMarketCap’s Altcoin Season Index dropped sharply, highlighting a shift away from higher-risk tokens.
Across sectors, losses were led by DeFi, followed by computing and smart contract platforms, underscoring a broad cooling trend in the crypto market.
