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Bitcoin extended losses on Tuesday, reversing a brief weekend recovery as crypto markets failed to follow the broader rally in risk assets driven by easing U.S.–China trade tensions and upbeat sentiment across Asian equities.
At 01:43 ET (05:43 GMT), Bitcoin dropped nearly 3% to $107,712.3, marking another session of weakness as traders shied away from fresh long positions amid lingering volatility and fragile sentiment.
Crypto Lags Risk Rally
The world’s largest cryptocurrency led losses across digital assets even as risk appetite improved globally. Asian stocks surged — with Japan’s Nikkei 225 hitting new records on optimism over fiscal dove Sanae Takaichi’s rise toward premiership, while Chinese markets rebounded on signs of softer rhetoric from U.S. officials regarding trade talks.
Yet, crypto markets moved in the opposite direction. Bitcoin struggled to reclaim the $110,000 level following October’s flash crash, which wiped out $500 billion in total crypto market capitalization and shattered the “Uptober” narrative of historically strong October performance.
Analysts noted that Bitcoin’s correlation with equities has broken down, as traders focus more on internal market risks — including thin liquidity, leveraged liquidations, and regulatory uncertainty — than on broader macro relief.
Fading Uptober Sentiment
Once expected to deliver strong gains, “Uptober” is now losing steam. Bitcoin has shed over 2% month-to-date, reflecting renewed caution in an asset class still reeling from sharp intraday swings earlier in the month.
The flash crash not only damaged confidence but also triggered widespread risk aversion in crypto markets. Many traders remain hesitant to reenter positions until volatility subsides and momentum reestablishes itself.
Altcoins Mirror Bitcoin’s Slide
Broader cryptocurrencies mirrored Bitcoin’s pullback. Ether (ETH) dropped 5.3% to $3,859.65, failing to sustain above the key $4,000 threshold. XRP slipped 2.2% to $2.4145, showing limited reaction to news that Ripple Labs plans to list Evernorth, a Ripple-backed entity, on the Nasdaq through a SPAC merger expected to raise over $1 billion in XRP-related capital.
Other major altcoins followed suit — BNB fell 5.7%, while Cardano and Solana slid between 4% and 6%. Among meme tokens, Dogecoin declined 4.3%, and $TRUMP dropped 3.1%, reflecting the broader market’s cautious tone.
Despite improving risk sentiment in traditional markets, crypto remains decoupled and vulnerable to selling pressure. Analysts caution that without renewed institutional demand or clearer regulatory direction, Bitcoin’s technical resilience around $105,000–$107,000 may soon be tested again — marking a potential shift from the optimism that characterized earlier months of 2025.
