The cryptocurrency sector has undergone notable fluctuations in recent trading sessions, reacting to a landscape influenced by rising U.S. Treasury yields, which have generally exerted downward pressure on risk-oriented assets. Over the past 24 hours, Bitcoin's price slipped approximately 2%, bringing its market value to around $91,255. Despite this drop, the cryptocurrency retained its presence near the critical $90,000 psychological level.
Analysis of the trading activity reveals that Bitcoin's decline coincides with substantial liquidations totaling $361.56 million within a single day. This level of liquidation activity underlines the heightened volatility experienced by traders and investors managing positions in the digital asset. Additionally, exchange-traded funds focused on Bitcoin recorded a net outflow of $394.7 million on the recent Friday, reflecting investor caution amidst the broader macroeconomic environment.
In contrast to Bitcoin's weakened ETF flows, Ethereum's exchange-traded funds experienced modest net inflows amounting to $4.64 million within the same period. Nonetheless, Ethereum's spot price declined approximately 2.57%, settling near $3,105.82. Additional altcoins also followed the downtrend, with Solana declining 3.10% to $128.84, XRP falling 2.67% to $1.93, Dogecoin down 2.62% at $0.1256, and Shiba Inu dropping 3.44%, priced at approximately $0.000008.
The broader meme coin segment extended its overall contraction, with the total market capitalization diminishing by 3.9% to reach $44.7 billion. This segment's volatility often heightens in tandem with shifts in trader risk appetite and broader market sentiment, which currently appears tempered by macroeconomic developments.
Several cryptocurrency analysts provided further insights into these price dynamics. According to commentators at Daan Crypto Trades, Bitcoin has fully reverted to its prior trading range between $84,000 and $94,000 after a recent failure to maintain an upward breakout. This regression weakens the short-term bullish outlook, signaling a neutral or cautious market stance. Furthermore, they noted that a decline below the year's opening price seems probable given the historical tendency for yearly price candles to display lower wicks, suggesting that a removal from this support level would resemble unresolved movement rather than definitive breakdown.
Supporting this view, trader Jelle indicated that Bitcoin retraced back into the range observed in December, following an initial rebound from support that did not sustain. He emphasized the importance of the $90,500 level as a critical support point; failure to hold this threshold could shift short-term market structure to favor bears, compelling buyers to intervene to stabilize the price.
Ethereum’s price action faced notable resistance, with analyst CyrilXBT identifying repeated rejection at the same resistance zone for the second time, which could portend a prolonged consolidation phase. Such a scenario might see Ethereum's price lingering within this range for several months absent significant upward momentum.
Solana's outlook also exhibited bearish tones according to Tom Capital, who highlighted downside targets that include an initial support zone between $118 and $120, followed by a broader range of $95 to $110. He cautioned that sharp countertrend rallies could occur but maintained that the downward setup would be invalidated if Solana manages to reclaim and sustain prices above $145.
In contrast to these bearish indicators, crypto chart analyst Ali Martinez suggested that XRP might be forming a falling wedge chart pattern, which commonly precedes a bullish breakout. Should this technical setup resolve favorably, it could drive XRP prices towards a target near $2.23, offering speculative upside potential.
Overall, the persistence of rising U.S. Treasury yields continues to exert considerable influence on the cryptocurrency markets, contributing to divergent price performances and intensified scrutiny on support levels among major digital assets. Investors and traders are advised to monitor critical price thresholds and technical patterns that could dictate short- to medium-term market direction.