2025-02-05 02:06:14 by Benzinga

Major cryptocurrencies declined sharply on Tuesday following the announcement of a new regulatory oversight committee, with total market liquidations reaching nearly $485 million in the past 24 hours. CryptocurrencyGains +/-Price (Recorded at 8.15 p.m. ET)Bitcoin BTC/USD-2.96%$98,240.17Ethereum ETH/USD-4.15%$2,735.57Dogecoin DOGE/USD-7.19%$0.2649What Happened: The leading cryptocurrency dropped to $97,924.27, its lowest level in the last 24 hours of trading, while the broader crypto market capitalization fell 2.92% to $3.23 trillion. The decline coincided with newly appointed “Crypto Czar” David Sacks announcing the formation of a bipartisan, bicameral committee to establish a regulatory framework for digital assets. Ethereum also experienced downward pressure despite social media attention from Eric Trump, who suggested on X that “it’s a great time to add $ETH.” The second-largest cryptocurrency’s decline followed Dogecoin’s retreat after its 15% rally on Monday. The market turbulence triggered significant trading activity, with over 161,000 traders facing liquidations. The total cryptocurrency open interest decreased by 5.61% to $113.45 billion, while trading volume dropped 43.19% to $194.42 billion, according to CoinGlass. Market sentiment remains cautious, with the Crypto Fear and Greed Index reading 54 on Tuesday, indicating a neutral stance. Top Gainers (24-Hours) CryptocurrencyGains +/-Price (Recorded at 8.15 p.m. ET)Official Melania Meme (MELANIA)+11.56%$1.65Pudgy Penguins (PENGU)+3.96%$0.01374Hyperliquid (HYPE)+2.04$25.55The cryptocurrency market’s decline occurred against a backdrop of mixed traditional market performance. The Dow Jones Industrial Average gained 134.13 points, or 0.30%, closing at 44,556.04, while the S&P 500 rose 0.72% to 6,037.88. The tech-heavy Nasdaq Composite, however, fell 1.35% to 19,654.02. Dow futures showed minimal movement in after-hours trading, down just 7 points as of 8:15 p.m. EDT. See Also: Shiba Inu Eyes 393% Rally, Dogecoin Targets 333% Gains: What’s Happening? Analyst Notes:  Leading cryptocurrency analyst Rekt Capital expects Bitcoin to consolidate between $98,300 and $101,000 in the near term. “Bitcoin revisited the $101k level… but failed the subsequent post-breakout retest of it into new support,” they noted. Similarly, analyst Ali Martinez suggested Bitcoin is trading within a broader range between $90,900 and $108,500, with no clear directional trend. Cryptocurrency analyst Michaël van de Poppe offered a contrarian view regarding Ethereum’s prospects following Eric Trump’s comments, stating, “The most hated trade is usually the best trade to take. If Trump bets massively on $ETH, it’s almost foolish to not follow that route at these valuations.” The most hated trade is usually the best trade to take. If Trump bets massively on $ETH, it's almost foolish to not follow that route at these valuations.— Michaël van de Poppe (@CryptoMichNL) February 4, 2025 Read Next: Robinhood Ends Super Bowl LIX Bets Plan After CFTC Complaint: ‘Work To Roll Out A More Comprehensive Contracts Platform Later This Year’ Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.