The cryptocurrency market experienced a dip on Tuesday following a modest recovery the previous day, influenced by ongoing uncertainties regarding U.S.-China trade relations and the impact of a U.S. government shutdown. Bitcoin (BTC) remained stable, trading at approximately $115,200, while Ethereum (ETH) saw a decrease of 2%, landing at around $4,099. Other notable cryptocurrencies also faced declines on Tuesday: XRP fell by 1.5% to $2.64, BNB decreased by 1% to $1,136, and Solana (SOL) dropped 1.3% to $198.
In the realm of the Top 100 tokens, Hedera (HBAR) experienced a notable increase, gaining 12% to $0.20, while both Bittensor (TAO) and MemeCore (M) saw a rise of 7%. Conversely, the day’s most significant losses included Zcash (ZEC), down 12% to $317, Ethena (ENA) falling by 8% to $0.47, and Mantle (MNT), which slipped by 3.6% to $1.64. As a whole, the global cryptocurrency market capitalization decreased by 1% over the past 24 hours, totaling $3.95 trillion.
In terms of market activity, approximately $307 million in crypto positions were liquidated in the last 24 hours, with long positions accounting for about $215 million and short positions nearly reaching $93 million. Ethereum led the liquidations with approximately $92 million, following Bitcoin at around $72 million, while altcoins contributed more than $35 million.
Investors showed interest in spot Bitcoin ETFs, which garnered $149 million in inflows on Monday, marking the third consecutive day of inflows and totaling over $260 million. Spot Ethereum ETFs recorded nearly $134 million in inflows, according to reports from SoSoValue.
The atmosphere surrounding the market began to shift as President Donald Trump continued his trip across Asia, spending his second day in Japan before visiting China for discussions on a potential trade truce with President Xi Jinping. The Wall Street Journal indicated that the U.S. might consider rolling back certain tariffs on China if an agreement is reached regarding the crackdown on exports of chemicals used in fentanyl production.
Over recent weeks, trade negotiations have been tense, contributing to a significant market downturn on October 10 when Trump announced a 100% tariff on Chinese goods, prompting Bitcoin to dip briefly below $106,000. However, some analysts believe that market sentiment is beginning to recover despite ongoing macroeconomic challenges. Jasper De Maere, Desk Strategist at Wintermute, commented on the improving outlook, suggesting that while short-term volatility could arise, the overall sentiment in the market is strengthening. He noted, “with increasing breadth across the market as we experience a clear pick-up in risk-on sentiment.”
