Bitcoin and Ethereum Dip Despite Fed Chair Powell's Pro-Crypto Remarks

Leading cryptocurrencies dipped on Tuesday even as Federal Reserve Chair Jerome Powell made remarks seen as favorable for the industry during a Senate hearing.

Major cryptocurrencies slipped on Tuesday despite remarks from Federal Reserve Chair Jerome Powell during a Senate hearing that were seen as favorable for the industry.

Bitcoin began to slide in the morning hours, hitting an intraday low of $94,875.04 before recovering to $96,000 late evening. Ethereum fell back to the $2,600 zone a day after breaching $2,700.

The two leading assets were down 2.61% and 5.19%, respectively, over the last seven days.

In a significant development, Powell assured to "take a fresh look" at debanking, which the cryptocurrency industry had complained about during the previous administration. Powell also stated that the Fed won't develop a central bank digital currency under his watch during his testimony before the Senate Banking Committee.

Meanwhile, cryptocurrency liquidations reached $228 million over the last 24 hours, with long liquidations accounting for $154 million. Bitcoin's Open Interest rose by 1.49% in the last 24 hours. A rise in Open Interest, coming alongside a price drop, indicated the opening of new short positions.

That said, the number of traders betting on Bitcoin's price increase was still higher than targeting price declines, according to the Long/Short ratio.

Market sentiment returned to the "Fear" zone, according to the Crypto Fear & Greed Index.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $3.15 trillion, declining by 1.68% in the last 24 hours.

Stocks were a mixed bag on Tuesday. The Dow Jones Industrial Average rose 123.24 points, or 0.28%, to close at 44,593.65. The S&P 500 eked out a narrow gain of 0.03%, ending at 6,068.50. However, the tech-heavy Nasdaq Composite fell 0.36% to close at 19,643.86.

Investors parsed comments from Powell that the Fed was not in a hurry to lower interest rates.

The focus now shifts to the crucial consumer price index report, slated for release on Wednesday.

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Analyst Notes: Popular cryptocurrency analyst and trader Ali Martinez noted Bitcoin's accumulation trend score was close to zero, indicating that the apex digital asset was undergoing consolidation.

"A shift in demand here could set the stage for the next big move," the analyst predicted.

#Bitcoin $BTC accumulation trend score is near zero, signaling a period of consolidation. A shift in demand here could set the stage for the next big move! pic.twitter.com/0nSIt1qKY8

Another widely followed analyst, Rekt Capital, stated that Bitcoin needs a daily close above $97,700 or reclaim the level as support to justify a bullish move toward $101,000.

#BTC Bitcoin continues to enjoy price stability at the blue diagonal trendline support which is a positive

However, BTC needs a Daily Close above ~$97700 (light blue) and/or reclaim said level as support to build on its momentum towards $101k (black)

$BTC #Crypto #Bitcoin https://t.co/LdmHPHoyuv pic.twitter.com/zU7GvOudp3