Bitcoin and Ether fell again on Tuesday after a relatively quiet start to the week, as bearish sentiment once again weighed on digital asset markets. Investors remained cautious as the crypto market continued to struggle to find a clear direction after last week’s sharp decline.
Ethereum posted bigger losses than Bitcoin, extending its weak performance since a sharp drop in October. The second-largest token fell as much as 6% before stabilizing, while Bitcoin slipped below the US$70,000 mark after failing to sustain a brief recovery.
The pressure on Bitcoin intensified after the cryptocurrency erased all of the gains it had made since US President Donald Trump was re-elected in late 2024. Despite the new administration being seen as more crypto-friendly, Bitcoin is now on track for its longest monthly loss since 2018, signaling a further erosion of market confidence.
While prices rebounded from last week’s lows, derivatives markets continued to show negative signals. The funding rate for Bitcoin futures contracts remained in negative territory, indicating traders still have bearish expectations and risk appetite remains weak.
The selling pressure was also reinforced by large outflows from exchange-traded funds, with investors pulling billions of dollars out of Bitcoin and Ethereum ETFs since the early October crash. The development highlights the ongoing challenges facing the crypto market, as macro factors and sentiment volatility continue to weigh on risk assets.
