Leading cryptocurrencies spiked Tuesday ahead of President Donald Trump's tariff rollout on the symbolic "Liberation Day."

What Happened: Bitcoin reclaimed and consolidated in the $85,000 zone, triggering a leg up for other large-cap coins like Ethereum and Dogecoin.

The second-largest cryptocurrency, however, failed to capitalize on the surge, dropping below $1,900 overnight.

Bitcoin's dominance rose further to 61.8%, its highest since February 2021.

Over $256 million was liquidated from the market in the last 24 hours, with short positions accounting for the majority of the losses.

Bitcoin's Open Interest, or the dollars locked in its unsettled futures contracts, rose by 5.25% in the last 24 hours, suggesting an influx of new money into the market.

The Long/Short Ratio was over 1 as of this writing, indicating a higher number of traders positioned bullish on the apex cryptocurrency.

The market remained gripped in "Fear," according to the Crypto Fear and Greed Index.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $2.74 trillion, following a spike of 2.48% in the last 24 hours.

Stocks began the new quarter on a high. The S&P 500 rose 0.38% to close at 42,001.76. The tech-focused Nasdaq Composite gained 0.87%, ending at 17,449.89. The Dow Jones Industrial Average, however, retreated narrowly by 0.03% to close at 41,989.96.

Investors parsed weak manufacturing data for March, as the Manufacturing Purchasing Managers' Index fell back into contraction territory after two months of marginal growth.

The market was on tenterhooks ahead of Trump's "Liberation Day," which would see "reciprocal" tariffs on countries accused of having unfair trade barriers against U.S. goods.

Analyst Notes: Popular blockchain analytics firm CryptoQuant drew attention to the sharp decline in selling pressure by the cohort holding Bitcoin for over a month but less than three months.

"These holders, who form an essential part of short-term investors, appear to show reduced activity in the market after taking profits from their short-term trades of 1-3 months," CryptoQuant said.

Arthur Hayes, co-founder of cryptocurrency exchange BitMEX and chief investment officer at Maelstrom Fund, reiterated his $250,000 BTC price target by year-end, citing the Federal Reserve's pivot from quantitative tightening to quantitative easing.

"The Fed will flood the market with dollars," Hayes said in an essay published Tuesday.