Cryptocurrency markets experienced a significant downturn on Tuesday, with Bitcoin (BTC) crashing below the critical $92,000 support level for the first time in nearly two weeks. This bearish momentum spilled over into the altcoin sector, leading to substantial losses for major tokens.
Cardano (ADA), a leading layer-1 blockchain, dropped to $0.683, a stark contrast to its previous high of $1.321. Solana (SOL) plunged to $140, its lowest point since October 11, down from near $300 in January. This decline is attributed to ongoing concerns about its meme coin ecosystem and a large token unlock related to the FTX collapse. Tron (TRX) also retreated alongside other altcoins. The broader crypto market meltdown has resulted in estimated losses approaching $1 trillion over recent months.
The article posits that a recovery for altcoins like ADA, SOL, and TRX is contingent on a Bitcoin rebound. BTC has been consolidating between $90,000 and $108,200 this year. A decisive move by Bitcoin above the $108,200 resistance and its all-time high of $109,200 is seen as a necessary catalyst for altcoin gains. Technically, Bitcoin has formed a cup and handle pattern on the weekly chart with a target around $122,000, offering a potential bullish signal.
Market attention is now focused on external catalysts. NVIDIA's earnings report, scheduled for Wednesday, is a key event. Analysts expect revenue of $38.16 billion (a 72.6% year-over-year increase) and EPS of 85 cents. A strong report could boost risk assets like crypto, signaling sustained AI chip demand. Conversely, weak forward guidance could trigger further declines.
Additionally, US tariff policy under the Trump administration is a factor. While tariffs on Canadian and Mexican goods are confirmed, any last-minute delay could increase demand for stocks and cryptocurrencies. The article suggests a pause in tariffs would likely support a Bitcoin and altcoin price rebound.
Separate data highlights a 25% decline in active addresses on the Bitcoin blockchain since March 2024, falling to 734k. This indicates waning investor interest and is viewed as a bearish signal, with analysts warning of potential further downside toward the $68,958 support level, or even $59,300-$63,000 if that fails. Market probability for Bitcoin reaching $80k before the November US elections is seen as low, around 6%.
