Bitcoin, Ethereum Shed Early Gains on Tuesday, While Stocks Recover Well Following Monday's DeepSeek Scare

More than $300 million was liquidated from the cryptocurrency market over the last 24 hours, with $229 million in upside bets getting deleted.

Leading cryptocurrencies pared early gains on Tuesday, while stocks recovered following Monday’s losses.

Bitcoin fell to $100,260 by the evening after a surge to $103,465 in the morning hours. However, the leading cryptocurrency eventually rose above $101,000 as traders bought the dip.

Ethereum also gave up early advances, falling to a low of $3,044 after a move above $3,200 in the morning.

More than $300 million was liquidated from the cryptocurrency market over the last 24 hours, with $229 million in upside bets getting deleted.

Here's a look at what happened in cryptocurrency markets on Tuesday.

Bitcoin's Open Interest slid by nearly 4% in the last 24 hours. A drop in spot price, coinciding with a drop in OI, suggested liquidation of longs.

Interestingly, 60% of Binance’s top traders were still long Bitcoin, indicating a potential rebound in the coming days.

The market sentiment remained in the "Greed" zone, according to the Crypto Fear & Greed Index.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $3.44 trillion, contracting 1.49% in the last 24 hours.

Nasdaq Composite Lifts Over 2% After DeepSeek-Fueled Sell-Off

Stocks rebounded on Tuesday, recouping losses from Monday’s DeepSeek-fueled decline. The Nasdaq Composite lifted 2.03% to end at 19,733.59. The S&P 500 rose 0.92%, closing at 6,067.70. The Dow Jones Industrial Average added 136.77 points, or 0.31%, to close at 44,850.35.

AI behemoth Nvidia Corp. (NASDAQ:NVDA) rallied 8.93%, a day after recording its worst single-day loss in history.

Investors will turn their attention to the Federal Reserve meeting on Wednesday, with a consensus that the central bank will keep its current target rate of 425–450 bps unchanged, according to the CME FedWatch tool.

Analyst Notes: Widely followed cryptocurrency analyst and trader Ali Martinez spotted a sell signal on Bitcoin's hourly chart, using the TD Sequential indicator.

"Bitcoin could retest recent lows around $99,000. A rebound may follow, supported by a dovish outlook from the Fed tomorrow," Martinez predicted.

The TD Sequential indicator is a technical analysis tool that identifies potential trend exhaustion points and price reversals.

The TD Sequential indicator presents a sell signal on the hourly chart, suggesting Bitcoin $BTC could retest recent lows around $99,000. A rebound may follow, supported by a dovish outlook from the Fed tomorrow.

Chainlink, a blockchain middleware platform, announced the launch of its zkSync 2.0 testnet. The testnet is designed to showcase Chainlink's services on zkSync, an Ethereum Layer 2 scaling solution.

"The integration of Chainlink on zkSync 2.0 will enable developers to build decentralized applications (dApps) that combine the high throughput and low transaction fees of zkSync with Chainlink's secure and reliable decentralized oracle services," Chainlink said in a statement.

BlockFi, a cryptocurrency lending platform, announced the launch of BlockFi Yield, a new high-yield savings account that offers up to 8.6% annual percentage yield (APY) on stablecoins. The BlockFi Yield account is available to both new and existing BlockFi clients.

"BlockFi Yield is designed to provide a simple and convenient way for our clients to earn interest on their stablecoin holdings, with no minimum balance requirements or hidden fees," BlockFi said in a statement.

Blockchain analytics firm CryptoQuant noted a significant rise in market share of Bitcoin holdings by U.S. entities, including exchanges, banks, and funds, suggesting that the bull market was far from over.

"The bull market is not over yet"The percentage of Bitcoin holdings by U.S. entities continues to rise relative to the percentage of holdings by non-U.S. entities." – By @t0_god

Read more 👇

Photo by SvetlanaParnikova on Shutterstock