Major cryptocurrencies declined during Asia trading hours on Tuesday due to ongoing profit-taking and another day of net outflows from U.S.-listed bitcoin exchange-traded funds (ETFs) on Monday, which weighed on bullish sentiment.

Bitcoin (BTC) dropped to nearly $66,500, erasing all gains made on Monday, while ether (ETH) fell to $3,400, reversing gains from the previous week. BTC has been trading around its 50-day moving average at $66,000, testing its medium-term uptrend. Meanwhile, BTC ETFs saw net outflows totaling $145 million, extending last week's poor performance.

Leading losses, major tokens like dogecoin (DOGE) and Solana’s SOL fell by as much as 9% in the past 24 hours according to CoinGecko data. Ton Network’s TON declined by 5%, while BNB Chain’s BNB performed relatively better with losses limited to just 1.5%.

Last week, BTC dropped below the $65,000 mark for the first time in a month amid ETF outflows surpassing $500 million and the Federal Reserve signaling only one interest rate cut in 2024.

“Other factors have compounded this,” noted Neil Roarty, analyst at Stocklytics, in an email to CoinDesk. “Political uncertainty triggered by Emmanuel Macron's unexpected decision to call a snap election in France has bolstered the dollar as traders exit the euro.”

“A strong dollar typically puts downward pressure on Bitcoin,” he added, suggesting that significantly lower interest rates and a weaker dollar would be needed to approach the $70,000 mark.

Elsewhere, FxPro senior market analyst Alex Kuptsikevich cautioned about prevailing bearish sentiment despite positive developments in ether ETFs failing to lift ETH prices.

“Ethereum initially gained over 6% on upbeat ETF expectations after briefly falling below its 50-day MA on Friday. However, it has since lost nearly 1.5% since Monday's start, raising concerns about near-term altcoin performance,” he said in a Tuesday email.

“Increased weekday liquidity is likely to favor selling interest over buying,” Kuptsikevich concluded. #BTC #altcoins #bitcoin #solanAnalysis #doge⚡