NEW YORK — The cryptocurrency market wobbled Tuesday, with Bitcoin briefly falling below $27,000 overnight before clawing back most of its losses as traders digested fresh signals from U.S. and Asian regulators, renewed NFT enthusiasm and persistent macro headwinds.
Data from major exchanges showed the world’s largest digital asset sinking to $26,930 in thin Asian trading. By 2 p.m. ET, however, Bitcoin had rebounded to about $27,500, essentially flat over 24 hours. “The market is searching for direction ahead of this week’s U.S. inflation print and the Federal Reserve minutes,” said a Hong Kong-based derivatives desk manager who asked not to be named because of company policy.
The morning downturn followed the U.S. Securities and Exchange Commission’s decision late Monday to postpone rulings on spot Ether exchange-traded fund applications from ARK 21Shares and VanEck. The agency set a new comment deadline for mid-April, extending a process that some analysts say could drag into the summer. “Each delay chips away at near-term bullish sentiment, even if approval odds haven’t materially changed,” noted Mina Ahmed, digital-asset strategist at GlobalView Investments.
Across the Pacific, Hong Kong’s Securities and Futures Commission (SFC) said it has now received more than 150 expressions of interest from crypto exchanges seeking licenses ahead of a 1 June compliance deadline. The regulator opened a formal application window in February as part of the city’s drive to position itself as a regulated digital-asset hub. An SFC spokesperson told reporters the agency expects “only a handful” of platforms to meet its strict capital and custody standards on day one.
In the non-fungible token market, activity on upstart marketplace Blur continued to eclipse incumbent OpenSea. According to blockchain analytics firm DappRadar, Blur generated roughly $32 million in NFT trades over the past 24 hours, extending its streak of outpacing OpenSea to seven consecutive days. Traders attributed the surge to Blur’s ongoing token-airdrop incentives.
DeFi markets were comparatively muted, with total value locked across major protocols hovering near $54 billion, unchanged from Monday, DeFiLlama figures show.
Looking ahead, analysts expect macro indicators to set the tone. “If U.S. CPI comes in hotter than expected, risk assets—including crypto—could face renewed pressure,” said Carol Tan, head of research at Singapore-based exchange Luno. At the same time, the SEC’s ETF timetable and Hong Kong’s licensing results are likely to shape narrative drivers through the second quarter.
“Regulatory clarity remains the wild card,” Tan added. “A single approval—or a single enforcement action—can swing momentum dramatically in either direction.”