Bitcoin Slips Below $65K as Traders Eye $70K Target

Bitcoin's price has fallen below $65,000 after four consecutive days of testing this level without any significant surge in buying. According to Alex Kuptsikevich, chief market analyst at FxPro, the lack of selling is 'a build-up of short positions well above this level.'

The crypto sentiment index is currently at 30, which falls into what is known as the fear zone. Meanwhile, traders are eyeing $70,000 as the next area to watch, with the 200-day moving average sitting nearby.

In broader markets, U.S. 10-year Treasury yields rose six basis points on Monday to 4.71%, while Brent crude held at $87.73 a barrel after jumping 5% on Monday. The focus is also on Wednesday's U.S. inflation figures at 8:30 a.m. ET, which could put pressure on assets that do better when rate rises look less likely.

Grayscale Investments filed Form RW withdrawal requests with the SEC to cancel registration statements for three proposed altcoin ETFs, including the Grayscale Cardano Trust ETF, Grayscale Hedera Trust ETF, and Grayscale Polkadot Trust ETF. Following this announcement, market prices for Cardano, Hedera, and Polkadot each dropped by more than 2 percent within 24 hours.

Hedera had fallen over 30 percent during the past two months to trade at $0.068. The bill establishing a comprehensive federal regulatory framework for digital assets remains pending in the Senate, with Republican leaders needing to secure at least 60 votes for its passage.