Summary
- Crypto roundup for Tuesday portrays risk aversion as China’s reaction to Trump’s tariffs joins fresh firing in Gaza.
- BTC drops 3.0% after a two-day winning streak, while Gold pulls back from a fresh record high, even as the U.S. Dollar dribbles.
- IMF raises global growth forecasts, U.S. earnings reports came in positive, but couldn’t recall buyers.
- Cautious mood ahead of Fed Chair Powell’s speech adds to sour sentiment.
- Crypto developments were mostly unimpressive, $100 million liquidations grabbed attention.
- U.S. equities dropped more than 1.0% each, before paring some losses, after an upbeat Monday.
- Risk catalysts, Powell’s comments eyed for fresh directions.
Crypto Roundup for Tuesday: China, Israel renew risk aversion despite IMF optimism
The market sentiment returns to the bear’s table, following a day of positive performance, as fresh fears surrounding the U.S.-China trade war and doubts about the Gaza ceasefire emerge on Monday. The risk aversion also takes clues from anxiety ahead of the U.S. Federal Reserve (Fed) Chairman Jerome Powell’s speech.
In doing so, the pessimists ignore the International Monetary Fund’s (IMF) upward revision to the global growth forecasts, strong third-quarter (Q3) earnings reports from the U.S. companies, and dovish remarks from Fed Governor Michelle W. Bowman.
China’s alleged tightening of rare earth metals’ exports and an activation of port fees on the U.S. ships renewed trade war fears. Notably, U.S. President Donald Trump’s 100% tariffs on China bolstered trade woes on Friday, but Trump’s weekend comments highlighted an easy tone and triggered a market consolidation on Monday.
Elsewhere, reports made rounds that five Palestinians were killed by Israeli forces in Gaza, despite the ceasefire, flagged fears of a fresh Israel-Hamas war amid a delicate peace brokered by the U.S. The risk of losing peace also gained validation from Israeli officials’ comments, as they show dislike over the delayed handover of hostages.
Meanwhile, the IMF raised its global 2025 GDP forecast to 3.2% from 3.0%, as well as revised up growth predictions for Japan, Europe, and the U.S., in its latest publication.
That said, Fed Governor Bowman said, “I continue to see two rate cuts before year’s end.”
On a different page, the U.S. Ambassador to the North Atlantic Treaty Organization (NATO) said that a big Ukraine weapons announcement is coming tomorrow. This added to the already fragile market sentiment.
Crypto, Equity Update
Cryptocurrency markets face another show of risk-aversion, following a two-day consolidation, as major coins drop more than 3.0% each, while some tokens slid as low as 10% on a day.
Bitcoin (BTC) slid over 3.0%, while Ethereum (ETH), Ripple (XRP), Solana (SOL), and Avalanche (AVAX) all dropped over 7.0% by press time. More importantly, Binance Coin (BNB) slumped more than 10% and Mantle (MNT) is down almost 14% at the latest.
Notably, the Bitcoin Dominance improves to 59.0%, from 58.8%, but the crypto market capitalization (market cap), drops 3.41% on the day, to $3.75 trillion by press time, according to CoinMarketCap.
Among the major news, the crypto market’s $100 million position liquidations within an hour gained major attention, per data from CoinGlass, justifying the major coin’s slump on Tuesday. That said, position liquidation is the forced closing of a trader’s positions by a broker due to insufficient margin. This data reveals whether long (buy) or short (sell) positions were closed, helping explain recent price movements.
Elsewhere, Bhutan took a dramatic step by shifting its self-sovereign ID system to the Ethereum blockchain, with an aim to provide nearly 800,000 citizens with secure and verifiable digital identities.
Security Alliance (SEAL), a non-profit organization concentrating on the security of the Web3 ecosystem, mainly via crypto crime investigations, recently launched an innovative fight phishing scams tool to verify malicious websites.
More Details: SEAL’s New Fight Phishing Scams Tool Uses Cryptographic Proof to Expose Fake Sites
The U.S. banking giant, JPMorgan Chase, confirmed speculations that their clients will be able to trade Bitcoin and other cryptocurrencies starting in 2026.
Read More: JPMorgan Confirms Bitcoin and Crypto Trading for Clients in 2026
Some of the top crypto news are mentioned above, while more updates like this could be traced to our Coin Bytes.
Wall Street begins Tuesday’s trading with more than 1.0% daily loss for all three benchmarks, reversing the week-start rise. In doing so, the U.S. equity gauges ignored upbeat quarterly earnings from JPMorgan Chase, Johnson & Johnson, Wells Fargo, Goldman Sachs, BlackRock, and Citigroup.
That said, Dow Jones initially dropped 1.10%, S&P 500 slid 1.30%, and Nasdaq composite sank 1.80%. However, the benchmarks recovered after the first trading hour, currently posting less than 1.0% loss for all.
It’s worth noting that hopes of easing U.S-China trade war tensions and a ceasefire in Gaza allowed all three U.S. equity benchmarks to post an upbeat day.
- Gold retreats from its ATH, easing from $4,180 to $4,135 by press time during a three-day winning streak.
- Bitcoin (BTC) slumps, snapping a two-day uptrend with more than 3.0% intraday loss to $111K as we write.
- Ethereum (ETH) slides over 6.0%, falling back to $3,970 after a two-day winning streak.
- U.S. Dollar Index (DXY) remains sidelined, lacking direction around 99.30 after an upbeat Monday.
- Wall Street benchmarks trade lower, with Dow Jones down 0.30%, while S&P 500 and Nasdaq both falling around 0.50% and 0.80% intraday as we write.
- WTI Crude Oil hits a fresh five-month low, reversing the previous day’s corrective bounce, while falling to $57.68.
Focus on Powell…
Having witnessed initial reaction to the China news, Gaza anxiety, and a slew of U.S. earnings reports, market players will concentrate on Fed Chair Jerome Powell’s speech for further directions.
Notably, Powell didn’t address monetary policy or the economy in his last public appearance. Today’s speech will likely focus on these topics, and any hawkish remarks from could support the U.S. Dollar, which in turn can negatively affect equities and cryptocurrencies. However, Gold is expected to stay strong, and U.S. equities could see further gains depending on Powell’s speech, upcoming earnings, and overall market sentiment.
Also read: Cryptocurrency Weekly Price Prediction: BTC, ETH & XRP Plummet under U.S. Risk Pressure
