Bitcoin (BTC), Ethereum (ETH) Decline Sharply Following Announcement Of New Regulatory Oversight Committee

Major cryptocurrencies declined sharply on Tuesday following the announcement of a new regulatory oversight committee, with total market liquidations reaching nearly $485 million in the past 24 hours.

Major cryptocurrencies declined sharply on Tuesday as the announcement of a new regulatory oversight committee coincided with a broader market sell-off.

What Happened: The leading cryptocurrency dropped to as low as $97,924.27 in the past 24 hours of trading, as the broader crypto market capitalization fell 2.92% to $3.23 trillion.

The decline came as newly appointed “Crypto Czar” David Sacks announced the formation of a bipartisan, bicameral committee to establish a regulatory framework for digital assets.

Ethereum also faced downward pressure despite attention from Eric Trump, who suggested on Fox Business that “it’s a great time to add $ETH.”

In my opinion it's a great time to add $ETH.

The second-largest cryptocurrency's decline followed Dogecoin’s retreat after a 15% rally on Monday.

The market turbulence triggered 161,113 traders facing liquidations, as the total cryptocurrency open interest decreased by 5.61% to $113.45 billion, while trading volume dropped 43.19% to $194.42 billion, according to CoinGlass.

Market sentiment remained in the neutral territory, with the Crypto Fear and Greed Index reading 54 on Tuesday.

Top Gainers (24-Hours)

The broader crypto market decline came against a backdrop of mixed traditional market performance. The Dow Jones Industrial Average rose 134.13 points, or 0.30%, to close at 44,556.04, while the S&P 500 gained 0.72% to 6,037.88.

However, the tech-heavy Nasdaq Composite dropped 1.35% to 19,654.02. Dow futures showed minimal movement in after-hours trading, down just 7 points as of 8:15 p.m. EDT.

See Also: Shiba Inu Eyes 393% Rally, Dogecoin Targets 333% Gains: What’s Happening?

Analyst Notes: Leading cryptocurrency analyst Rekt Capital expects Bitcoin to consolidate between $98,300 and $101,000 in the near term. “Bitcoin revisited the $101k level… but failed the subsequent post-breakout retest of it into new support,” they noted.

#BTC Bitcoin revisited the $101k level (black)In fact, Bitcoin even Daily Closed above it, but failed the subsequent post-breakout retest of it into new supportBTC is probably going to consolidate between $98300 and $101000 for the time being$BTC #Crypto #Bitcoin https://t.co/X9EPlU6XtO pic.twitter.com/UOysUdhAlr

Similarly, analyst Ali Martinez suggested Bitcoin is trading within a broader range between $90,900 and $108,500, with no clear directional trend.

#Bitcoin $BTC is consolidating between $90,900 and $108,500. Until we see a clear breakout beyond this range, the trend direction remains uncertain. pic.twitter.com/JRyk9dLjlw

Cryptocurrency analyst Michaël van de Poppe offered a contrarian view regarding Ethereum’s prospects following Eric Trump’s comments, stating, “The most hated trade is usually the best trade to take. If Trump bets massively on $ETH, it’s almost foolish to not follow that route at these valuations.”

The most hated trade is usually the best trade to take. If Trump bets massively on $ETH, it's almost foolish to not follow that route at these valuations.

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