BTC, ETH Drag Global Crypto Market Cap to $2.96 Trillion
Bitcoin and Ethereum, including other tokens facing sell pressures, have dragged global crypto market capitalisation below $3 trillion on Tuesday as investors face regulatory anxiety and altcoin fatigue.
Today, crypto market volatility picked up, with bears attempting to reassert control. Bitcoin and other major tokens slipped, pushing the global crypto market capitalisation back below $3 trillion, while 24-hour trading volume fell under $100 billion.
The market struggles to break out even after Fed rate cut boosts liquidity, still sentiment remains downbeat amidst buckets of uncertainties.
Trading data obtained from CoinMarketCap.com showed that cryptocurrency market cap declined to $2.96 trillion during early trading hours after hovering around $3.05 trillion the previous day.
The market has lost 2% in the last 24 hours due to sell pressures, which some analysts have projected to persist in the absence of Santa Claus rally earlier anticipated. The latest sell-off was driven by regulatory jitters relating to policy uncertainties for BTC adoption in sovereign portfolios.
The IMF confirmed ongoing negotiations with El Salvador to restrict public Bitcoin activities (IMF), including halting BTC purchases and phasing out the Chivo wallet.
Simultaneously, Kaspersky warned of “Stealka” malware targeting crypto wallets. Hence, retail investors have become cautious about security risks.
BTC liquidations surged to $87 million, up by +75% in 24 hours, with longs accounting for 65% of losses. Perpetual open interest rose 7.4% to $802B, signalling fresh bearish bets.
High leverage exacerbated downside volatility. ETH and SOL faced similar pressure, with $30 million+ liquidations each.
Market retreat reflects a toxic mix of regulatory anxiety, derivatives turbulence, and altcoin fatigue. With crypto-Nasdaq correlation at -0.70 (24h), traditional macro drivers took a backseat to sector-specific risks.
Traders, crypto market analysts are monitoring whether BTC holds $85K support and watch for Salvadoran Bitcoin policy updates. Bitcoin falls back below $88,000 after failing to sustain gains above this level in the previous session when positive broad-based risk appetite boosted the cryptocurrency.
Investors are turning cautious ahead of a batch of U.S. data later that have the potential to alter expectations for interest-rate cuts by the Federal Reserve. Reduced trading activity during the holiday-shortened week could also lead to increased volatility.
Selling at $2900, Ethereum has struggled to move back to its earlier highs and has failed several times to break above the $3,200 level. This area has now become a strong resistance, keeping the ETH price capped in the short term. BTCUSD Slumps on Spot ETF Outflows, Price Resistance
