The outlook for the crypto market looked bleak on Tuesday following a brief rally on Monday that sent Bitcoin above the $31,000 level for the first time in six days. 

In the past 24 hours, the combined market cap of all crypto assets has dropped by $90 billion to just over $1.2 trillion. Bitcoin is now trading at approximately $29,500, down 5% in just one day.

However,  analysts have recognised recent institutional investor interest in Bitcoin exchange-traded products as a sign of long-term strength in the crypto market. 

"It's largely institutional, and to a degree retail investors, recognising that the pain is already endured, and we're closer to the bottom than we are to the top,” Chief investment officer of Arizona-based IDX Digital Assets, Ben McMillan, told Reuters.

"If you're getting into crypto at these levels, a little near-term volatility could be worth a long-term payoff.”