Bitcoin Nears $87,700 Amid ETF Outflows and Mixed Market Signals
Bitcoin traded near $87,707.21 on Tuesday, fluctuating between $86,000 and $88,000 over 24 hours. Market analysts noted that a break below a key technical level could result in further downside movements. US-listed spot Bitcoin ETFs saw significant outflows, with $227 million withdrawn on Tuesday following Monday's outflow of $357.69 million. These two days combined outflows exceed $584 million, greatly surpassing last week's net inflow of $286.60 million (SoSoValue).
On the trading front, Bitfinex BTC long positions increased to 72,184, the highest level since February 2024, which is considered a contrarian signal historically linked to downtrends. Options data indicate that Bitcoin is likely to trade in a near-term range between $85,000 and $100,000.
External economic indicators showed the U.S. jobless rate spiked to the highest level since April 2021 but did not trigger a bullish reaction in the market. Investors remain focused on liquidity and positioning with ongoing bets on Federal Reserve rate cuts, according to market analyst Timothy Misir from BRN.
Among altcoins, the Cardano-based NIGHT token rose 9% in 24 hours, while SKY and Monero (XMR) each increased by 4%. However, most of the top 100 tokens experienced declines. Meanwhile, HashKey shares fell 5% after their debut in Hong Kong.
The dollar index remained above 98.00 with the 10-year U.S. Treasury yield exceeding 4.10%. The Chinese yuan was bid at two-month highs, suggesting policymakers have room to introduce stimulus measures.
