The cryptocurrency market edged lower on Tuesday, following modest gains on Monday, as uncertainty over U.S.-China trade relations and the ongoing U.S. government shutdown weighed on investor sentiment.
Bitcoin (BTC) is trading flat on the day at around $115,200, while Ethereum (ETH) dropped by 2% to about $4,099.Other top cryptocurrencies also fell on Tuesday, with XRP down 1.5% to $2.64, BNB falling 1% to $1,136, and Solana (SOL) slipping 1.3% to $198.
BTC ChartAmong the Top 100 tokens, Hedera (HBAR) gained 12% to $0.20, while Bittensor (TAO) and MemeCore (M) rose 7%.
The day’s biggest losers include Zcash (ZEC), down 12% to $317, Ethena (ENA), which fell 8% to $0.47, and Mantle (MNT), slipping 3.6% to $1.64.
The global cryptocurrency market capitalization stood at $3.95 trillion on Tuesday, down 1% over the past 24 hours.
Liquidations and Market Flows
Around $307 million in crypto positions were liquidated over the past 24 hours, according to Coinglass data. Long positions accounted for about $215 million, while shorts made up nearly $93 million.
Ethereum led the liquidations with nearly $92 million. Bitcoin followed at around $72 million, while altcoins contributed over $35 million.
Spot Bitcoin ETFs attracted $149 million in inflows on Monday, marking the third consecutive day of inflows totalling over $260 million. Spot Ethereum ETFs recorded nearly $134 million in inflows, according to SoSoValue.
Outlook is ‘Improving’
President Donald Trump continued his Asia trip on Tuesday, spending his second day in Japan before heading to China on Thursday to discuss a potential trade truce with President Xi Jinping.
Earlier today, The Wall Street Journal reported that the U.S. could roll back some tariffs on China if Beijing agrees to crack down on exports of chemicals used to produce fentanyl.
The developments come after several weeks of tense trade negotiations that contributed to a sharp drop in crypto markets on Oct. 10, when Trump announced 100% tariffs on China. The move led Bitcoin to briefly drop below $106,000.
This comes a few days after U.S. and Chinese negotiators agreed on a framework for a potential trade deal.
However, some experts believe that market sentiment is improving despite the macroeconomic uncertainty.
“While Uptober hasn’t lived up to the expectation so far, we see macro backdrop and positioning continuing to improve as we head into this week’s FOMC meeting,” Jasper De Maere, Desk Strategist at Wintermute, said in comments shared with The Defiant.
De Maere added that although short-term volatility is possible, the overall market outlook is strengthening, “with increasing breadth across the market as we experience a clear pick up in risk-on sentiment.”
Source: https://thedefiant.io/news/markets/crypto-market-edges-lower-while-us-stocks-hit-new-highs
