Bitcoin Holds Stronger Ground, Slipping Just 3% to $95,000 Amid Broader Crypto Declines
Cryptocurrencies extended their slide on Tuesday, with altcoins bearing the brunt of the sell-off, while bitcoin (BTC) displayed relative resilience, dipping just 3% to $95,000.
The hardest-hit tokens included XRP, Polkadot (DOT), Litecoin (LTC), Aptos (APT), and Cardano (ADA), all plunging between 15% and 18% in the last 24 hours, adding to Monday’s losses. The CoinDesk 20 index — which tracks the 20 largest cryptocurrencies by market capitalization, excluding memecoins, stablecoins, and exchange tokens — sank by nearly 10%. Most assets in the index saw double-digit declines, though Ethereum’s ether (ETH) and Solana’s SOL fared slightly better, falling 8% and 9%, respectively.
Bitcoin managed to hold up relatively well compared to its peers, retreating to $95,000, down nearly 3% over the past 24 hours.
This sharp sell-off follows Monday’s plunge, which triggered one of the most significant leverage flushes in recent years, with over $1.5 billion worth of bullish derivatives positions liquidated. On Tuesday, the decline forced an additional $450 million in liquidations across digital assets, predominantly long positions, according to data from CoinGlass. Meanwhile, open interest in bitcoin futures remains near record highs at almost $58 billion, though it has dipped 6.8% since Sunday.
The ongoing downturn comes on the heels of a blistering month-long rally in crypto markets following Donald Trump’s election victory in early November. Major altcoins doubled in value or more during this period, while bitcoin surpassed the $100,000 mark for the first time.
Bitcoin’s market dominance — its share of the total cryptocurrency market capitalization — surged to 57.9% on Tuesday, the highest level since late November, reflecting a shift from riskier altcoins back to the relative stability of BTC.
The market turbulence may stem from anticipation of U.S. inflation data set to be released on Wednesday, according to Ruslan Lienkha, Chief of Markets at YouHodler. “The market expects a slight uptick in inflation,” Lienkha told CoinDesk via email. “However, if CPI figures exceed expectations, it could exacerbate the ongoing correction across financial markets. In such a case, attention will shift to the Federal Reserve’s timing and likelihood of rate cuts heading into the new year.”
Interestingly, traditional financial markets have remained steadier. After minor losses on Monday, major U.S. stock indices were trading flat on Tuesday.
