Bitcoin shows signs of profit-taking at around 70K, though market sentiment remains' stubbornly bullish '

The price of bitcoin slipped to $69,200 amid profit-taking and general movements in the US stock market. Despite the negative news, market sentiment remains bullish, driven by the belief of long-term holders and expectations of further spot ETF approvals.

Bitcoin (BTC) slipped to $69,200 early on Tuesday due to profit-taking after briefly crossing the $70,000 level on Monday night. There is also a mixed trend in terms of price movements of major tokens.

The price action of BTC moves in line with the overall movement of the US stock market, reflecting the risky investments that exist in the market. Some meme stocks and tokens rose more than 100% after well-known stock market trader Keith Gill re-emerged on the market.

According to a report from cryptocurrency exchange Bitfinex on Monday, Bitcoin's decline since March may have been caused by selling by long-term holders. However, blockchain data shows that this trend has stopped, and investors are accumulating BTC.

Blockchain data analytics firm CryptoQuant shared with CoinDesk in a report on Tuesday that 50 percent of the long-term bitcoin supply is "inactive," indicating no change in trading activity or holdings in tracking wallets. This is considered a sign of strong long-term belief and may indicate that future prices may rise further. As a result, sentiment surrounding Bitcoin's continued growth remains "stubbornly bullish," with Singapore-based firm QCP Capital observing an increase in trading activity.

In a broadcast message late Monday, QCP said, "Despite last week's negative headlines about the Mt. Gox and DMM hacks, BTC still confidently broke above $69,000 in the Asian market." This bullish sentiment is likely to continue as the market awaits the launch of the ETH spot ETF, which will generate fresh demand." "Another reason for continued bullish sentiment is that speculators have increased their long positions in other major cryptocurrencies in anticipation of more spot ETF approvals in the near term," the firm also noted.

In other markets, Ethereum (ETH) and Dogecoin (DOGE) saw modest declines, while Cardano's ADA and Solana's SOL rose as much as 3 percent. CoinDesk 20 (CD20), a broad index containing the largest tokens (excluding stablecoins), is up 0.41% in the last 24 hours. Among other large tokens with a market cap of more than $1 billion, the ENA token of doggy themed floki (FLOKI) and synthetic dollar project Ethena rose more than 10%.