What to Know:
- Crypto markets experienced a broad retreat, with Bitcoin slipping back to around $103,000 after a brief rally.
- Bitcoin miners and AI-related equities saw significant declines due to weaker-than-expected earnings reports.
- Despite the downturn, Bitcoin is holding its trading range between $100,000 and $110,000, indicating consolidation.
The crypto market saw a retracement on Tuesday, with Bitcoin (BTC) leading the decline as it fell back to the $103,000 level. This pullback erased gains from the previous day, fueled by factors like President Trump’s economic proposals. Ethereum (ETH) and major altcoins such as XRP and Solana (SOL) also experienced notable drops.
Bitcoin miners and AI infrastructure plays experienced significant selling pressure. Several firms reported disappointing earnings and growth forecasts, signaling a potential correction in the AI sector. This weakness rippled through crypto-related equities, with companies like CleanSpark and Hut 8 seeing substantial declines.
The broader market context included negative headlines from traditional finance. SoftBank divested its $5.8 billion stake in Nvidia, contributing to a downturn in tech stocks. U.S. private employers also reported job cuts, adding to concerns about the economic outlook.
Despite the day’s volatility, analysts remain cautiously optimistic about Bitcoin’s stability. Bitcoin is currently consolidating within a $10,000 range. Improving U.S. macro conditions could help maintain the $100,000 support level for Bitcoin.
Source: Original article
