Bitcoin fell for a fourth consecutive day on Tuesday, sliding to around $63,100, its lowest level since February 6th, according to data from CoinDesk. The downturn coincides with broader risk aversion in global markets and a strengthening U.S. Dollar.
The cryptocurrency is currently down 2.1% since midnight UTC and has lost 4.7% of its value over the past 24 hours. Analysts warn that a breach of the $60,000 support level could trigger further liquidations, potentially driving the price down to $52,500 – a key support area established in 2021.
The sell-off extends to the altcoin market, with Bitcoin Cash (BCH) experiencing a 11.5% decline in the last 24 hours, and a 3% drop since midnight UTC. SUI, JUP, PUMP, and WLFI have all shed more than 2% of their value. Market participants describe the current price action as a “slow bleed,” reminiscent of previous cryptocurrency bear markets, though the average crypto Relative Strength Index (RSI) is signaling an “oversold” condition, suggesting a potential rebound in the low $60,000 range.
Data indicates significant de-risking within the crypto futures market. Notional open interest has decreased by over 4% to $92.5 billion, the lowest level since early April 2025. Exchanges have liquidated $360 million worth of leveraged positions in the last 24 hours, with bullish, or “long,” bets bearing the brunt of the liquidations, accounting for over 90% of the total across platforms including Hyperliquid, HTX, Aster, Bitmex, and Bitfinex. Increased open interest in Bitcoin futures, reaching 690.89K BTC – the highest since February 6th – suggests some traders are actively shorting the asset.
Annualized funding rates for perpetual contracts tied to major tokens remain negative, indicating a prevailing bearish sentiment. TRX and TRON exhibit particularly low funding rates, as low as -35%, suggesting a potential over-crowding of short positions. Volatility is also on the rise, with Bitcoin and Ether’s 30-day implied volatility indices reaching two-week highs. On Deribit, put options for both Bitcoin and Ether are trading at a premium of over 10 volatility points compared to call options with an expiry date at the end of March, reflecting heightened concerns about a prolonged price decline. Block flows show activity in BTC put spreads and straddles, strategies used to profit from or hedge against downward price movement.
Amidst the widespread decline, pippin (PIPPIN), an AI-related token, has bucked the trend, doubling in value since the start of the year and rising 7.7% in the past 24 hours. However, the broader altcoin market lacks significant bullish catalysts. The decentralized finance (DeFi) sector has experienced a smaller loss in total value locked (TVL) than the overall depreciation of assets, indicating a shift towards stablecoins as investors seek to mitigate risk. This has negatively impacted DeFi tokens, with CoinDesk’s DeFi Select Index (DFX) down 34.8% year-to-date, making it the worst-performing benchmark.
Layer-1 tokens, including aptos (APT), Cosmos (ATOM), and Sui (SUI), have all fallen between 5% and 8% over the past 24 hours, as the altcoin market struggles with limited liquidity and sustained selling pressure. According to CoinDesk data, Bitcoin was trading at $63,163.78 at the time of publication.