Total cryptocurrency market capitalization hovers above $2.70 trillion, according to TradingView data, which has wiped out nearly $1 trillion since peaking in December 2024. Multiple indicators suggest Tuesday's sell-off could mark a partial bottom. Andre Dragosch, head of research at Bitwise Europe, highlighted that the crypto-asset sentiment index fell to its lowest level since August, coinciding with the positioning squaring of the yen carry trade, with Bitcoin bottoming out around $49,000. "The crypto-asset sentiment index has just sent out a lot of contrarian buy signals for Bitcoin. The general bearish sentiment in fund flows, on-chain data and derivatives suggests that downside risks are quite limited. At these prices, the risk-reward outlook appears to be quite favorable," Dragosch noted.