Leading cryptocurrencies failed to breakout on Tuesday, while stocks pulled back from highs, as Federal Reserve Chair Jerome Powell issued a cautionary note.

Bitcoin sank below $112,000 as the ongoing downturn tested the patience of the bulls. Ethereum was stuck in the $4,100-$4,200 zone. Trading volume for the two blue-chip currencies dropped significantly.

Outflows from Bitcoin exchange-traded funds increased to over $100 million on Sept. 23, according to SoSo Value, indicating tepid institutional interest.

Bitcoin’s dominance remained below 58%, while Ethereum’s market share dropped to 13%.

Over $260 million were liquidated from the cryptocurrency market in the last 24 hours, with long liquidations accounting more than half of the total.

Bitcoin’s open interest rose by a modest 0.19% in the last 24 hours. Meanwhile, over 67% of top trader accounts on Binance were long on the leading cryptocurrency.

Top Gainers (24 Hours) 

The global cryptocurrency market capitalization stood at $3.87 trillion, following a drop of 0.54% in the last 24 hours.

Stocks retreated from record highs on Tuesday. The Dow Jones Industrial Average slid 88.76 points, or 0.19%, ending at 46,292.78. The S&P 500 fell 0.55% to finish 6,656.92, while the tech-focused Nasdaq Composite lost 0.95% to settle at 22,573.47

In his remarks, Fed Chair Powell reiterated that monetary policy is not on a preset course and that the Fed will remain data-dependent as it heads into the final two meetings of the year. He acknowledged the growing difficulty in balancing its dual mandate of stable prices and maximum employment.

According to the CME FedWatch tool, traders have priced in a 91% chance that the central bank would cut interest rates by another 0.25% at its October meeting.

In a note shared with Benzinga, analysts at cryptocurrency payment company B2BINPAY said that Bitcoin’s recent retest toward the $113,000-$112,000 range showed increasing selling pressure.

“Our base case is that BTC holds $110,000-$112,000, keeping dominance near 58-59% and alts in consolidation,” the analysts projected. “But a breakdown below $110,000 risks a spike in dominance above 60%, deeper alt losses, and the slide toward $105,000.”

On the other hand, a rebound toward $120,000 could bring “relief” to Ethereum, Solana and other coins, they added.

Widely followed cryptocurrency analyst Ali Martinez said that Ethereum could reclaim $4,400 if it holds the support at $4,000.

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