Bitcoin fell below $113,000 on Tuesday as cryptocurrency prices weakened, contrasting with new highs in U.S. stock indices. The decline accelerated in the afternoon U.S. session, even as Nvidia rallied toward a $4 trillion market cap. Analysts warn of potential further pullbacks if key support levels fail.
Bitcoin's price, which stood at $112,741.92, declined nearly 2% over the past 24 hours to trade around $112,700. The cryptocurrency failed to hold above $116,000 and reversed below $113,000 late in the U.S. trading session, mirroring Monday's drop. This occurred despite minimal reaction to the listing of three new spot ETFs in the U.S.
Ether dropped 4% to $3,989.75, slipping under $4,000. Solana fell nearly 4% to $194.69, while Litecoin also declined almost 4% to $96.87. Hedera gave back half of its initial gains tied to ETF news.
In contrast, U.S. stocks surged, with the S&P 500 reaching 6,900 for the first time and the Nasdaq hitting a new record. Nvidia led the charge, gaining 5% to approach a $4 trillion market cap during CEO Jensen Huang's keynote at the GPU Technology Conference. The rally in tech and AI stocks appeared to draw capital away from crypto.
Crypto-related equities also weakened. Miners like Bitfarms, CleanSpark, HIVE (at $0.1366), and IREN closed 4%-5% lower. Galaxy fell 8% following a $1.15 billion capital raise, and MicroStrategy sank 3.7%.
Bitfinex analysts cautioned that Bitcoin's rebound from the October 10-11 trough may not hold. 'BTC needs to hold above the short-term holder cost basis at $113,600, which is now pivotal for confirming a constructive shift,' they stated. 'Trading above this level has historically marked the transition from corrective to accumulation phases.' Failure could lead to a retracement near $97,500, the lower bound of the current range.
The session's update came at 20:38 UTC on October 28.