Bitcoin, Ethereum, XRP, Dogecoin Retreat Amid Trump's Iran Warning: Analyst Says BTC Mirroring 2023 Bottoming Pattern, 'Decisive Breakout' Could Follow

Leading cryptocurrencies corrected on Tuesday as investors weighed in on President Donald Trump’s latest warnings to Iran.

Crypto Market Cools Down

Bitcoin dived below $77,000, while Ethereum retreated beneath $2,400 amid a sharp correction across the cryptocurrency market.

Cryptocurrency-related stocks also fell, with Strategy Inc.(NASDAQ:MSTR) and Bitmine Immersion Technologies Inc.(NYSE:BMNR) closing down 6.06% and 7.70%, respectively.

Long liquidations spiked, with over $250 million liquidated after the drop in spot prices, according to Coinglass data.

Bitcoin’s open interest fell 2.84% over the last 24 hours. Interestingly, smart money sentiment on Binance, which refers to the collective outlook and capital allocation of institutional investors, turned "extremely bullish."

"Greed" sentiment prevailed in the market, according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours)

The global cryptocurrency market capitalization stood at $2.60 trillion, contracting by 1.86% over the last 24 hours.

Stocks Pressured After US Strikes on Iran

Stocks extended their losses on Tuesday. The Dow Jones Industrial Average plunged 419.02 points, or 0.79%, to end at 52,766.88. The S&P 500 declined 0.71% to close at 7,631.4,while the Nasdaq Composite shed 1.03% to settle at 26,099.77.