Bitcoin Sinks Below $113K as Stocks Hit Records; Sell-Off Could Have Room to Run, Says Bitfinex

Bitcoin’s BTC$67,164.41 rally attempt stalled again on Tuesday, with prices once more failing to hold above $116,000.

Sellers stepped in during the U.S. afternoon hours, dragging BTC back below $113,000, nearly identical to Monday’s reversal. The largest crypto changed hands at $112,700, down just shy of 2% over the past 24 hours.

Ether (ETH) fell 4%, dropping back below the $4,000 level. The broader crypto market saw mostly red, with little reaction to three new spot ETF listings in the U.S. Solana (SOL) and LTC$53.31 each fell nearly 4%, while Hedera (HBAR) gave back half of its initial ETF-related gains.

The crypto action is all the more lackluster as U.S. stocks climbed higher, with the S&P hitting 6,900 for the first time ever and the Nasdaq also clinching a new record high. Leading was tech giant Nvidia, gaining 5% to a new record and just shy of a $5 trillion market cap as its CEO Jensen Huang addressed the GPU Technology Conference.

Mostly in the green early in the session, crypto-related stocks also faded sharply into the red by the day's end. Miners turned AI infrastructure bets Bitfarms (BITF), CleanSpark (CLSK), Hive (HIVE) and IREN closed the session 4%-5% lower, while Galaxy (GLXY) fell 8% amid a $1.15 billion capital raise. Strategy (MSTR), the world's largest corporate BTC owner, sank 3.7%.

Bitcoin at risk of deeper pullback

Bitcoin managed to rebound from the trough of the October 10-11 crash, but the correction may not be over, Bitfinex analysts warned in a fresh report.

For that, BTC needs to hold above the short-term holder cost basis at $113,600, which is "now pivotal for confirming a constructive shift," they said.

"Trading above this level has historically marked the transition from corrective to accumulation phases," the report said.

Meanwhile, failing to sustain above that level poses risk of a deeper retracement to near $97,500, the likely lower bound of the current consolidation range, the analysts added.

UPDATE (Oct. 28, 20:38 UTC): Adds analyst comment from Bitfinex report.