Bitcoin and major cryptocurrencies dropped over 3% as profit-taking ensued after a recent rally, with Cardano’s ADA and Ether leading losses. XRP is expected to decline despite an amended ETF filing slated for April 30. Large investors have reduced Bitcoin selling, but accumulation has weakened significantly, highlighting ongoing uncertainties in the cryptocurrency market amid fears of a potential U.S. recession.
The cryptocurrency market experiences a notable downturn as Bitcoin and major altcoins, including Cardano’s ADA and Ether (ETH), lost over 3% following a prior rally. Specifically, Bitcoin’s price fell from above $84,200 to approximately $83,500. Moreover, Cardano led the declines among major cryptocurrencies, plummeting by up to 5%. The overall crypto market capitalisation dipped by 3.3% within 24 hours, reflecting a significant shift in market sentiment.
XRP faces a challenging period with predictions of a further decline, despite some positive developments regarding exchange-traded funds (ETFs). ProShares has amended its spot XRP ETF filing, aiming for a U.S. launch on April 30. However, market conditions suggest that XRP’s price may decrease in the upcoming days, overshadowed by the current bearish sentiment.
Prominent investors are showing a slowdown in Bitcoin selling as they manage losses. A report from CryptoQuant notes that daily Bitcoin sales by large investors have decreased from 800,000 BTC in late February to about 300,000 BTC recently. Nevertheless, large investors’ accumulation of Bitcoin has weakened, decreasing by approximately 30,000 BTC within the week.
The cryptocurrency decline parallels ongoing issues in Chinese markets, where stocks in Hong Kong fell by 2.9% after a promising economic growth rate of 5.4% in the first quarter. Traders are wary of tariff implications, which are influencing risk perceptions within the crypto sector.
James Toledano, COO at Unity Wallet, remarked on the growing fears of a U.S. recession, as major institutions revise their economic forecasts upward. Although Bitcoin could be viewed as an appealing decentralized asset amidst traditional market volatility, risks remain high for all sectors, including cryptocurrencies. Overall, the current economic landscape demands close scrutiny as it continues to impact market dynamics significantly.
