The cryptocurrency market has dipped 1% with Bitcoin showing a cooldown after an April surge. Monero and zCash are gaining after a hack, while XRP struggles at critical support levels. Global investment in crypto funds spiked significantly, with Ethereum preparing for volatility after an upcoming hardfork. Bitcoin’s supply indicates most holders are in profit, while Strategy increases its holdings substantially.
The cryptocurrency market is currently experiencing a slight dip, losing around 1% following a spike in the latter half of April. As it stands, the total market capitalisation is about $2.94 trillion, which reflects a marginal decline of just over 1% over the past week. Among the notable players, Monero and zCash are posting gains amidst recent events, indicating a renewed interest in privacy-focused coins after a significant hack last week.
Bitcoin’s recent performance seems to reflect the general trends seen in US stock indices. After its price surged in late April, it is currently cooling off, which some analysts suggest is a necessary adjustment. This slight retreat from overbought conditions may ultimately serve to set the stage for potential future growth.
However, XRP hasn’t been riding the same wave that saw other cryptocurrencies rally last month. Instead, it is hovering around crucial moving averages, specifically the 200- and 50-day. Currently trading at 2.09, XRP is pushing through established support levels. The direction of any forthcoming breakout will be critical, with a potential for a striking 50% price change according to analysts assessing current trends.
Recent data from CoinShares indicates a major influx of investment into global crypto funds, with an impressive $2.029 billion flowing in last week. This includes $3.423 billion in total inflows; Bitcoin saw a sizeable rise of $1.84 billion, while Ethereum experienced a boost of $149 million and slight gains were also noted for XRP, Tezos, and Solana.
Ethereum anticipates a bout of increased volatility soon with its planned Pectra hardfork set for May 7. Analysts note that Bollinger bands in the ETH/BTC pair have tightened, suggesting a pivotal breakout could be imminent, though the direction it will take remains uncertain, as analysts closely monitor the situation.
A noteworthy statistic from Glassnode reveals that 88% of Bitcoin supply is currently showing a profit, although many holders who bought in the $95,000 to $100,000 range are facing losses. This recent adjustment in profitability suggests a reset in investor expectations, yet without severe sell-offs apparent in the market.
In other investment news, the firm Strategy reportedly acquired another 1,895 BTC at an average price of $95,167 each last week, amounting to about $180.3 million. Their total holdings now include 555,450 BTC, originally purchased at $68,550 on average, totalling an investment of approximately $38.08 billion.
Alexander, an experienced analyst in currency markets, the global economy, and commodities like gold and oil, brings over a decade of insight to his work. He frequently offers his perspectives to prominent socio-political and economic publications, participates in radio and television discussions, and shares his unique research findings.
