Bitcoin trades sideways near an important monthly close while high-risk tokens decline.

Bitcoin traded in a tight range near $76,800 on Tuesday as the broader crypto market showed signs of slowing momentum. Altcoins drifted lower, WLFI extended its slide, and traders closely monitored whether bitcoin can hold a key level identified by Bitmine Chairman Tom Lee.

Market activity was largely muted, with bitcoin flat on the day while ether edged down roughly 0.1% since midnight UTC. The subdued tone follows Monday’s pullback, when even a $2 billion bitcoin purchase by Strategy (MSTR) failed to ignite a recovery.

Focus remains on the $76,000 level, which Tom Lee has flagged as a critical threshold for confirming a bull market if bitcoin secures a monthly close above it. For now, the asset continues to hover just above that mark.

Altcoins largely followed bitcoin’s sideways movement, with most components of the CoinDesk 20 Index posting losses. Only SUI and NEAR managed to register slight gains.

In traditional markets, sentiment leaned cautious, with Nasdaq 100 and S&P 500 futures declining while the U.S. dollar strengthened. Meanwhile, crypto derivatives data showed a pickup in trading activity, as futures volume rose significantly over the past 24 hours. Open interest held steady and liquidations dropped sharply, suggesting traders are repositioning rather than being forced out of trades.

Zcash remained a standout, recording a third consecutive day of rising open interest, although recent metrics indicate increasing selling pressure. XRP also saw open interest climb to its highest level in months, but bearish signals dominate, hinting at hedging activity tied to recent ETF developments.

Cardano’s ADA exhibited a classic bearish structure, with open interest hitting record highs even as prices extended their losing streak—pointing to fresh short positions entering the market. Dogecoin also reflected a risk-off mood, showing 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 fell to a new year-to-date low, and bitcoin volatility stayed subdued, indicating that 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 and weigh on risk assets, including crypto.

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

WLFI continued to decline after concerns surfaced about the financial outlook of its associated treasury firm, AI Financial, which warned it may not survive the year. The token has now lost a significant share of its value since launch.

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

Across sectors, losses were led by DeFi, followed by computing and smart contract platforms, highlighting a broad cooling trend across the crypto market.