Leading cryptocurrencies plunged on Monday as geopolitical uncertainty and upcoming inflation data kept investors on edge.
Crypto Market Plunges
Bitcoinnearly slipped below the $81,000 mark before staging a late-evening rebound. Ethereumdipped to the $2,400 level and is now down nearly 10% over the last week. XRPand Dogecoinalso recorded steep drops.
Cryptocurrency-related stocks also fell, withStrategy Inc.(NASDAQ:MSTR) and Bitmine Immersion Technologies Inc.(NYSE:BMNR) closing down 1.08% and 0.83%, respectively.
More than $775 million in cryptocurrency positions were liquidated over the past 24 hours, including $493 million in just the last four hours, accordingto Coinglass data. Long position traders bore the brunt of the losses.
Bitcoin’s open interest slipped 1.64% over the last 24 hours. Retail and whale derivatives traders on Binance, meanwhile, flipped “Bullish” on BTC, increasing their long exposure.
Dow Rallies, S&P Near Flatline
Stocks had a mixed day on Monday. The Dow Jones Industrial Averagerose 195.60 points, or 0.38%, to close at 51,850.55.The S&P 500, in contrast, fell 0.06% to end at 7,807.24,while the tech-heavy Nasdaq Composite shed 0.44% to close at 27,245.90.
Russian strikes on Ukrainian energy facilities continued even after President Donald Trump announced an “energy ceasefire” between the two countries.
The United States Oil Fund(NYSE:USO), which tracks WTI crude oil, sharply rebounded, closing up 1.91% at $151.03 on Monday.
‘Pullback Isn’t the End of Anything’
Ali Martinez, a widely followed cryptocurrency analyst and trader, noted that whales have increased accumulation as Bitcoin fell from $87,000 toward $80,000. However, they believe the asset still needs to clear a key “hurdle” first.
“On-chain data shows nearly 800,000 BTC were previously traded around $84,569. A break above this supply zone would strengthen the case for a move higher,” the analyst predicted.
Technical analyst Kevin said that a year-end pullback was inevitable, although their “plan” remains unchanged: $77,000-$83,000 keeps $93,000-$100,000 in play, while a close below $77,000 opens $67,000-$76,000
“CPI Wednesday is the catalyst. A pullback isn’t the end of anything. It’s the next opportunity for the sidelined and should result in a higher low,” Kevin added.
Photo Courtesy: Marc Bruxelle on .com
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