Leading cryptocurrencies plunged deeper on Wednesday

Post-Trump Rally Reversed

Bitcoin tumbled below $73,000 to touch its lowest level since November 2024, wiping nearly all of the gains since President Donald Trump assumed office.

Ethereum sank to a nine-month low of $2,100, while Dogecoin traded flat, helped by Elon Musk's latest endorsement.

Over $750 million was liquidated from the market in the last 24 hours, according to Coinglass, with a whopping $550 million in long liquidations alone.

Bitcoin's open interest fell 2.85% to $50.84 billion. At its peak in October 2024, the open interest was over $94 billion.

The "Extreme Fear" sentiment prevailed in the market, according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours) 

The global cryptocurrency market capitalization stood at $2.59 trillion, following a drop of 2.40% over the past 24 hours.

Stocks Retrace, Gold Gains

The stock market pulled back sharply on Tuesday. The Dow Jones Industrial Average fell 166.67 points, or 0.34%, to end at 49,240.99. The S&P 500 slipped 0.84% to close at 6,917.81, while the tech-heavy Nasdaq Composite dived 1.43%, settling at 23,255.19.

Geopolitical tensions spiked after the U.S. said an Iranian drone that "aggressively approached" aircraft carrier USS Abraham Lincoln in the Arabian Sea, reported the Associated Press.

Commodities edged higher, with spot gold rising 1.36% to reclaim the $5,000 per ounce level, while spot silver rose 1.69% to $86.68 per ounce.

Will Bitcoin Move Against Crowd Sentiment?

Blockchain analytics firm Santiment highlighted a sharp increase in bearish commentary about Bitcoin, with mentions of the $50,000-$59,000 price range overtaking those of the $90,000-$99,000 range.

"Markets move opposite to what the crowd expects, meaning there can at least be founded arguments for a short-term relief rally while retail is already assuming sub-$60,000 Bitcoin is a foregone conclusion," the firm added.

Ali Martinez, a well-known cryptocurrency trader and analyst, said Ethereum "has room" to fall further, potentially hitting a cycle bottom below $1.959, based on signals from the Market Value to Realized Value Extreme Deviation bands.

These pricing bands use statistical deviation from the MVRV ratio's all-time average to identify potential market tops and bottoms.

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