Cryptocurrencies took a breather on Tuesday after briefly reaching new highs, with Bitcoin touching $90,000 for the first time in history before retreating. The market cooled down as exchange funding rates dropped sharply, but long-position traders maintained their dominance.
Bitcoin (BTC/USD) rose 0.28% to reach $88,460.30, while Ethereum (ETH/USD) fell 1.43% to $3,267.67. Dogecoin (DOGE/USD), which gained 9.79%, surged after the appointment of Elon Musk and Vivek Ramaswamy as head of the Department of Government Efficiency.
However, the market’s volatility led to a sell-off in long positions worth nearly $550 million in the last 24 hours. The “Extreme Greed” sentiment intensified as the Cryptocurrency Fear and Greed Index rose to 84.
Top gainers included Bonk (BONK), Stellar (XLM), and Floki (FLOKI). The global cryptocurrency market capitalization remained at $2.95 trillion, following a 0.26% increase in the last 24 hours.
Analysts attributed the pullback as a normal retracement after a strong week of gains. Arthur Azizov, CEO of B2BINPAY, suggested that Bitcoin would continue to grow despite broader market volatility. Michaël van de Poppe, an influential analyst, encouraged investors to buy the dips and HODL their altcoins.
Investors are now focused on upcoming inflation numbers, including the consumer price index (CPI) on Wednesday and the producer price index (PPI) for Thursday.
Source: https://www.benzinga.com/trading-ideas/movers/24/11/41927985/bitcoin-ethereum-consolidate-dogecoin-surges-as-election-rally-takes-a-breather-analyst-says-pullback-typical-for-healthy-market