According to Golden Finance, TradingView data, the total market value of cryptocurrencies hovered above $2.7 trillion, and has evaporated nearly $1 trillion since its peak in December 2024. Several indicators suggest that Tuesday’s sell-off could mark a local bottoming. Andre Dragosch, research director at Bitwise Europe, stressed that the crypto-asset sentiment index fell to its lowest level since August, coincided with the closing of the yen arbitrage trading, with Bitcoin bottoming out around $49,000. “The cryptoasset sentiment index just sent a large number of reverse buy signals to Bitcoin. The general bearish sentiment in capital flows, on-chain data and derivatives suggests that the downside risk is quite limited. At these prices, the risk-return outlook seems to be quite favorable. ” Dragosch pointed out.