Dogecoin, Solana led the decline as the cryptocurrency market followed Bitcoin below $66K

Major cryptocurrencies such as Bitcoin and Ether experienced significant declines during the Asian trading session on Tuesday. Continued profit-taking and outflows from U.S.-listed Bitcoin ETFs have impacted bullish sentiment in the market. In this trend, tokens such as DOGE (DOGE) and Solana (SOL) have seen particularly sharp declines.

Bitcoin (BTC) fell to close, reversing all Monday's gains, while Ether fell to 3,400, erasing the week's gains. BTC has been hovering near the daily moving average, testing the medium-term uptrend. At the same time, Bitcoin outflows reached 145 million, continuing last week's poor performance.

According to CoinGecko, DOGE (DOGE) and Solana (SOL) have each fallen as much as 9% in the last 24 hours, making them the biggest decliners. In addition, Ton Network's TON fell 5 percent, while BNB Chain's BNB fared better, falling only 1.5 percent. The broad-based CoinDesk 20 (CD20) Liquid index, the largest token index that includes stablecoins, was down 4.2 percent.

Last week, BTC fell below the mark for the first time in nearly a month as outflows totaled more than 500 million and the Federal Reserve is only expected to cut interest rates once in 2024.

"Other factors aren't helping either," Neil Rorty, an analyst at investment platform Stocklytics, said in an email to CoinDesk. "The surprise announcement of snap elections by French President Emmanuel Macron further prompted traders to abandon the euro in favour of the dollar, which strengthened the dollar's position."

"A strong dollar tends to put downward pressure on Bitcoin," Neal added, "and for BTC to approach $70,000, it would require significantly lower interest rates and a weaker dollar."

Elsewhere, Alex Kuptzkevich, senior market analyst at FxPro, warned that overall market sentiment is bearish and that the development of a positive Ether ETF has done little to boost ETH prices.

"Ethereum was able to add more than 6 percent in anticipation of positive ETF news after briefly falling below its 50-day moving average on Friday," Alex said in an email Tuesday. "However, the decline of nearly 1.5 percent since the start of Monday makes one cautious about the short-term performance of altcoins."

"Increased liquidity during the week may increase selling interest in favor of bears rather than bulls," Kuptzkevich added.