Cryptocurrency Markets Plummet as Bitcoin Falls Below $66K

The cryptocurrency market has taken a significant hit, with major tokens such as Bitcoin and Ether experiencing significant declines in Asian trading hours on Tuesday. This downturn is largely attributed to ongoing profit-taking and outflows from U.S.-listed Bitcoin ETFs, which have impacted bullish sentiment.

Cryptocurrency market graph showing decline in prices

The decline was led by notable losses in tokens like Dogecoin (DOGE) and Solana’s SOL, with Bitcoin sliding to nearly $66,500, reversing all its Monday gains. Ether fell to $3,400, reversing all of last week’s gains. The CoinDesk 20 (CD20), a liquid index of the largest tokens, minus stablecoins, is down 4.2%.

Bitcoin price chart showing decline

According to Neil Roarty, analyst at investment platform Stocklytics, the lack of immediate catalysts to prop up markets in the near-term is likely weighing down token prices. Additionally, the political uncertainty triggered by Emmanuel Macron’s surprise decision to call a snap election in France has further strengthened the dollar, putting downward pressure on Bitcoin.

Dollar vs euro graph showing strengthening of dollar

A strong dollar tends to put downward pressure on Bitcoin, and it would take considerably lower interest rates and a weaker dollar to push BTC closer to the $70,000 mark. Elsewhere, FxPro senior market analyst Alex Kuptsikevich warned of generally bearish sentiment as favorable ether ETF developments did little to buoy ETH prices.

Ethereum price chart showing decline

The increased liquidity on weekdays will likely play into the hands of bears rather than bulls by increasing selling interest. As the market continues to fluctuate, investors are advised to exercise caution and keep a close eye on market trends.

Cryptocurrency market volatility graph