Bitcoin hovered near $76,800 on Tuesday as momentum across the digital asset market faded, with altcoins trending lower and WLFI extending its decline. Traders are now focused on whether bitcoin can sustain a key level identified by Bitmine Chairman Tom Lee.

Price action remained subdued, with bitcoin largely unchanged while ether slipped slightly by around 0.1% since midnight UTC. The quiet session follows Monday’s broader sell-off, when even a $2 billion bitcoin purchase by Strategy (MSTR) failed to trigger a rebound.

The $76,000 level remains in focus, with Tom Lee describing it as a crucial threshold for confirming a bull market if bitcoin manages a monthly close above it. For now, the leading cryptocurrency continues to hover just above that line.

Altcoins largely mirrored bitcoin’s lack of direction, with most tokens in the CoinDesk 20 Index posting losses. Only SUI and NEAR managed to edge higher during the session.

Traditional markets also reflected a cautious tone, as Nasdaq 100 and S&P 500 futures declined while the U.S. dollar strengthened. In crypto derivatives, trading activity picked up, with futures volume rising notably over the past 24 hours. Open interest remained stable, and liquidations fell sharply, indicating orderly repositioning rather than forced selling.

Zcash remained a standout, logging a third straight day of rising open interest, although recent data points to increasing seller dominance. XRP also saw open interest climb to multi-month highs, but bearish signals prevail, suggesting traders may be hedging exposure tied to recent ETF flows.

Cardano’s ADA showed a classic bearish setup, with open interest reaching record levels even as prices extended a multi-day decline—indicating fresh short positions are likely entering the market. Dogecoin reflected a similar risk-off tone, registering the most aggressive seller-driven activity among major tokens.

Bitcoin and ether derivatives markets remained relatively stable overall, while options data suggested a calm environment. Ether’s implied volatility dropped to a fresh year-to-date low, and bitcoin volatility held near subdued levels, indicating traders are not pricing in panic despite recent weakness.

On the macro front, rising volatility in U.S. Treasury markets added to the cautious backdrop. Increased bond market instability can tighten financial conditions, potentially weighing on risk assets like cryptocurrencies.

Options data from Deribit showed broadly constructive positioning in bitcoin, although short-term indicators continue to reflect demand for downside protection.

WLFI extended its losses after concerns emerged about the financial outlook of its associated treasury firm, AI Financial, which warned it may not survive the year. The token has now shed a significant portion of its value since launch.

Elsewhere, INJ and QNT also moved lower, while sentiment across speculative assets weakened. CoinMarketCap’s Altcoin Season Index declined sharply, signaling a shift away from higher-risk tokens.

Sector performance was broadly negative, with DeFi leading losses, followed by computing and smart contract platforms, highlighting a wider cooling trend across the crypto market.