Bitcoin, Ethereum, Dogecoin Fall; XRP Gains Ahead of Key Inflation Data: Analyst Notes 'Another Strong Bullish Signal' for BTC

Leading cryptocurrencies fell on Tuesday as traders awaited key inflation data for clues on the Federal Reserve’s interest rate policy.Cryptocurrency24-Hour Gains +/-Price (Recorded at 9:24 p.m. EDT)Bitcoin (CRYPTO: BTC)-0.93%$78,664.62Ethereum (CRYPTO: ETH) -0.48%$2,490.21XRP (CRYPTO: XRP) +0.71%$1.41Solana (CRYPTO: SOL) -0.68%$103.43Dogecoin (CRYPTO: DOGE) -1.33%$0.08997Crypto Market Sees Selling PressureBitcoin slid below $78,000 as trading volume jumped nearly 50% in the last 24 hours. Ethereum‘s advance stalled at $2,500, while Dogecoin fell sharply following Monday’s jump.Cryptocurrency-related stocks also fell, with Strategy Inc. ) and Bitmine Immersion Technologies Inc. ) closing down 4.40% and 0.80%, respectively. Strategy last weekMore than $250 million was liquidated in the cryptocurrency market over the past 24 hours, including $163 million in long positions, according to Coinglass data.Bitcoin’s open interest rose 0.70% in the last 24 hours to $53.45 billion. A rise in open interest combined with a falling spot price typically signals a short buildup, meaning new sellers are actively entering the market.Market sentiment leaned toward “Greed,” according to the Crypto Fear & Greed Index.Top Gainers (24 Hours)Cryptocurrency (Market Cap>$100 M)Gains +/-Price (Recorded at 9:24 p.m. EDT)Venice Token (VVV) +30.44% $24.48Useless Coin (USELESS) +28.01% $0.2908Falcon Finance (FF) +22.65% $0.1477The global cryptocurrency market capitalization stands at $2.70 trillion after declining 0.36% over the past 24 hours. Read Also: Strategy's 'We're Back' Bitcoin Buy Was a One-Week Thing: What's Going On? Stocks Cool DownStocks started the holiday-shortened week in the red. The Dow Jones Industrial Average fell 628.18 points, or 1.18%, to close at 52,786.07. The S&P 500 declined 0.58% to end at 7,673.52, while the tech-focused Nasdaq Composite closed 0.32% lower at 26,421.41.Key inflation data is due this week, with the producer price index out Thursday and the consumer price index on Friday.Traders are currently pricing in a 59% chance of a rate cut at next week’s Federal Reserve policy meeting, according to the CME FedWatch tool.‘Strong Bullish Signal’Ali Martinez, a widely followed cryptocurrency analyst and trader, said Bitcoin has reclaimed its “Warm Supply Realized Price,” interpreting it as a “strong bullish signal.”The metric tracks the average acquisition price of Bitcoin that changed hands between a week and six months ago.Martinez highlighted that the four prior major reclaims of this level preceded strong rallies, including 74% in October 2024 and 159% in October 2023.Bitcoin just reclaimed its Warm Supply Realized Price.This metric tracks the average cost basis of BTC that last moved between 1 week and 6 months ago.The last four major reclaims were followed by rallies of:• Jan 2023: +69%• Oct 2023: +159%• Oct 2024: +74%• Apr… On-chain analytics firm CryptoQuant noted that the Market Value to Realized Value indicator remains below Bitcoin’s 365-day moving average—a level that has historically marked a transition from “repair to expansion.”CryptoQuant said reclaiming and holding the 365-day moving average remains a bull case, while a rejection at this level would signal weak aggregate profitability, keeping BTC in repair mode.MVRV Is Approaching a Regime Test — Not a Bull Signal Yet"✅ Bull case: reclaim and hold the 365DMA.🚨 Risk: rejection keeps MVRV in a repair regime.❌ Invalidation: a renewed move toward zero would argue the reset is still incomplete." – By Read Also: Bitcoin Crashing 50% in Two Years Due to AI Threats? Ethereum Founder Vitalik Buterin Disagrees and Here's Why Photo Courtesy: Sodel Vladyslav on Shutterstock.com