Bitcoin was also subject to a heavy dose of profit-taking after making new highs above the coveted $100,000 level last week. Traders were also seen locking in gains in most other cryptos.
The world’s biggest cryptocurrency fell 2.6% to $96,870.6 by 00:38 ET (05:38 GMT).
Global risk appetite was dented by heightened geopolitical tensions in the Middle East, after rebel forces overthrew President Bashar al-Assad’s government. Wall Street indexes fell on Monday.
Crypto markets were hit by a wave of profit-taking as traders awaited more cues on what incoming President Donald Trump’s plans for crypto policy will entail.
Traders had taken positive cues from the President-elect’s nomination of several pro-crypto candidates for key cabinet and regulatory positions- most notably for Paul Atkins to replace Gary Gensler as the Securities and Exchange Commission Chair.
But markets were now awaiting more tangible cues on policy, with Trump set to take office in just over a month. The President-elect had promised to make America the “crypto capital” of the world.
But doubts emerged in recent sessions over just how much regulatory support Trump could provide. Analysts largely dismissed the prospect of a Bitcoin Strategic Reserve under Trump.
Bitcoin has also fallen into a $90,000 to $100,000 trading range in recent weeks, having only briefly notched a record high of over $103,000 last week.
Sentiment towards crypto markets was also rattled by Google (NASDAQ:GOOGL) announcing a breakthrough in quantum computing with a next-generation chip, enabling it to solve extremely complex problems.
Further breakthroughs in quantum computing could undermine the cryptographic security measures of crypto, given that they would likely trivialize the otherwise complex processes needed to generate crypto tokens.
Consulting firm Deloitte said in a study that at least $40 billion worth of Bitcoin could be vulnerable to a quantum attack.
Broader crypto prices largely tumbled on Tuesday, tracking losses in Bitcoin.
World no.2 crypto Ether fell 6.1% to $3,702.02. World no.3 token XRP slid nearly 13% to $2.1672. XRP was one of the best performers in recent sessions on hopes that the SEC will drop its long-running lawsuit against issuer Ripple.
Solana, Cardano and Polygon sank between 7% and 16%, while among meme tokens, DOGE slumped 10%.
Source: Cryptocurrency - investing.com
