Bitcoin, Ethereum, XRP, Dogecoin Snap Winning Run; Analyst Sees New ETH Highs Once Gold's 'Insanely Parabolic' Trajectory Ends

Leading cryptocurrencies slumped alongside markets on Tuesday, while gold surged to fresh highs, as the U.S. government shutdown entered its seventh day.

Market Cools Down

Bitcoin fell below $121,000, ending a week-long rally that had sent it to record highs. Trading volume surged 15% in the last 24 hours, suggesting high selling pressure.

Similarly, Ethereum retreated from the mid $4,700s to below $4,500, while volumes jumped 60%. XRP and Solana also recorded sharp declines.

In the past 24 hours, 167,851 traders were liquidated, with total cryptocurrency liquidations at $621.29 million, according to Coinglass. Nearly $470 million in bullish longs were wiped out.

Bitcoin’s open interest fell 3.33% to $90.81 billion, while more than 50% of Binance futures traders remained bearish on the asset, according to the Long/Short ratio.

The market’s "Greed" sentiment weakened, according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours) 

The global cryptocurrency market capitalization stood at $4.16 trillion, contracting 2.58% in the last 24 hours.

Stocks Fall, Gold Hits Record High

Stocks retreated from record highs on Tuesday. The S&P 500 slid 0.38% to close at 6,714.59, snapping a 7-day winning streak. The tech-heavy Nasdaq Composite dipped 0.67% to end at 22,788.36. The Dow Jones Industrial Average dropped 91.99 points, or 0.2%, to end at 46,602.98.

The tech stocks were pressured as shares of Oracle Corp. (NASDAQ:ORCL) fell following reports suggesting that the company is facing financial challenges in renting out Nvidia Corp. (NASDAQ:NVDA) chips.

Meanwhile, gold prices rose to a new high of $4,000 per ounce on Tuesday. The federal government shutdown entered its seventh day.

Risk-On Switch Incoming?

Widely followed cryptocurrency analyst and trader Michaël van de Poppe was optimistic about new all-time highs for Ethereum, noting a potential reversal in the ETH/BTC ratio after a normal correction.

Van De Poppe also linked it to gold's "insanely parabolic" trajectory, predicting a "big risk-on switch" once the precious metal falls.

Ali Martinez, another well-known trader, said that $4,000–$4,800 has been a "danger zone" for ETH since 2021, with each touch resulting in a correction.

Photo Courtesy: OMG_Studio on Shutterstock.com

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