Latest reports claiming the U.S. and Iran were close to an arrangement to end the Middle East conflict failed to revive sentiment in cryptocurrency markets, early on Tuesday. The decline in crude oil prices or the easing in bond yields or the greenback's retreat did not suffice to lift cryptocurrencies into an overnight positive territory. Large outflows from Bitcoin Spot ETF products on Monday abetted the decline in cryptocurrency prices on Tuesday morning.
Overall crypto market capitalization has decreased more than half percent in the past 24 hours while Bitcoin has shed 0.7 percent during the same period. The leading cryptocurrency is currently trading near $64,165. Sentiment remains weak as markets digested the Bitcoin sales by Strategy Inc during the past week.
Both the crude oil price benchmarks are trading in negative territory amidst the diplomatic push to de-escalate tensions in the Middle East. Brent Oil has shed 0.73 percent while WTI Crude Oil has lost 0.58 percent. Sovereign bond yields eased across regions as the dip in crude oil prices dimmed concerns about fuel-led inflation. The six-currency Dollar Index which measures the U.S. Dollar's strength against a basket of 6 currencies is currently trading on a flat note. The Dow Jones and S&P 500 are trading in mildly positive territory while the Nasdaq Composite has edged up from the flatline.
Anxiety ahead of Wednesday's key inflation report also weakened crypto market sentiment. Headline annual inflation is seen rising to 3.5 percent from 3.4 percent in June. The core component thereof is seen increasing to 2.6 percent from 2.5 percent in the previous month. Headline inflation on a month-on-month basis is anticipated to decline 0.4 percent in July. The core component thereof is expected to reflect steady prices.
Liquidation of long positions has surpassed liquidation of short positions. The 24-hour liquidation statistics from Coinglass shows crypto liquidations - forced closure of a trader's leveraged position by an exchange or lending protocol for insufficient funds (margin or collateral) to cover potential losses - in the past 24 hours at $194 million comprising long positions of $134 million and short positions of $59 million.
Amidst a cascade of long liquidations, overall crypto market capitalization has decreased 0.57 percent overnight to $2.19 trillion while market leader Bitcoin traded between $64,830 and $63,752 during the same period. The decrease in overall crypto market capitalization was accompanied by a 16-percent jump in trading volumes.
Bitcoin (BTC), the largest cryptocurrency is trading 0.73 percent lower at $64,165.21. The current price is around 49 percent below the all-time high of $126,198.07 recorded on October 7, 2025. The original cryptocurrency's year-to-date losses stand at 26.7 percent.
