Cryptocurrencies demonstrated surprising stability on Tuesday, remaining largely unaffected by significant shifts in traditional asset markets. Bitcoin (BTC) hovered slightly above $62,000, experiencing a minor 1.2% decline over the past 24 hours, mirroring the performance of the broader CoinDesk 20 Index. Ethereum’s ether (ETH) remained nearly unchanged, while Aptos’s native token (APT) notably gained 6%.
In contrast, memecoins—often seen as the riskiest sector of the crypto market—faced a sell-off as traders took profits following recent surges. Large-cap meme tokens like pepe (PEPE), dogwifhat (WIF), and popcat declined by approximately 5% during the day.
This subdued performance in crypto occurred despite a rally in U.S. stocks, with the tech-heavy Nasdaq rising 1.5%. Traditional safe-haven assets, such as gold, saw a 1.5% drop, and crude oil and silver fell by 4%, likely influenced by easing tensions in the Middle East following a Hezbollah leader’s indication of support for a potential ceasefire with Israel.
Joshua Lim, co-founder of crypto trading firm Arbelos Markets, noted in a Telegram message that traditional finance players appear to have less focus on cryptocurrencies due to competing macroeconomic narratives, including developments in the Middle East, potential stimulus in China, Federal Reserve rate cuts, and the upcoming U.S. elections. He remarked, “Crypto volumes and volatility have languished while the crypto-native community has increasingly rotated into short-lived memecoin narratives and away from majors.”
Many crypto investors who had expected a bullish October have been disappointed, with prices remaining stagnant this month. However, looking at the broader picture, Bitcoin seems to be consolidating below its all-time high, potentially setting the stage for future price increases. Trader Bob Loukas stated, “An eight-month base has been built, sentiment reset, and rates are easing.”
He added that Bitcoin is entering the third year of its four-year market cycle next month, which historically has been a time of significant growth. Crypto trader CryptoCon echoed this sentiment, suggesting that the current market structure is developing healthily, stating, “Perspective is key; Bitcoin is doing great.” He noted that in previous cycles, it took several months after initial peaks to establish new all-time highs.
Related Topics:
