Bitcoin, Ethereum, XRP, Dogecoin Drop Further Amid Global Chip Sell-Off: Analyst Flags 'The Most Important Level' For BTC

Leading cryptocurrencies cracked alongside stocks on Tuesday, after a sharp decline in chip-related stocks cast doubts on the sustainability of the AI rally.

Crypto Market Sinks Deeper

Bitcoin dropped below $62,000 amid heavy selling, while Ethereum bulls failed to defend the support at $1,700. XRP and Dogecoinrecorded sharp declines as well.

Over $560 million was liquidated from the cryptocurrency market in the last 24 hours, with $490 million in bullish long positions wiped out, according to Coinglass data.

Roughly $350 million in Bitcoin longs were at risk of liquidation if the price dropped to $60,000.

Bitcoins open interest fell 1.39% over the last 24 hours. Whale and retail derivatives traders, meanwhile, bought the dip, adding more long exposure to $BTC.

Top Gainers (24 Hours)

The global cryptocurrency market capitalization stood at $2.15 trillion, following a decline of 1.63% from the previous day.

Stocks In Red After Chip Stocks Tumble

Stocks faced heavy sell-offs on Tuesday. The Dow Jones Industrial Average fell 45.87 points, or 0.09%, to close at 51,666.84.The S&P 500slid 1.44% to end at 7,365.46,while the tech-focused Nasdaq Compositedeclined 2.21% to close at 25,587.04.

Why This Support Is Significant For $BTC

Ali Martinez, a widely followed cryptocurrency analyst and trader, said that Bitcoin must hold the support at $60,587 to “maintain the current trend.”

Citing on-chain data, the analyst highlighted the $60,000–$63,000 range as one of the largest volume clusters, where over one million $BTC changed hands.

Michaël van de Poppe, another well-known cryptocurrency commentator, stated that Ethereum is currently stuck in the middle and needs to break above $1,800 to “regain momentum.”

“If the markets break back into that range, it can move quickly to $2,500+,” Van De Poppe said. “Other than that, its very likely to see retests at $1,385 and/or $1,505.”

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