The cryptocurrency market is down about 1% after a strong April surge, currently valued at $2.94 trillion. Monero and zCash are benefiting post-hacking while Bitcoin cools off and XRP struggles. CoinShares reports a rise in global crypto fund investments by $2.029 billion, with Ethereum bracing for volatility ahead of the Pectra hard fork on 7 May. 88% of Bitcoin supply is in profit despite losses in a specific price range and Strategy firm invests heavily in BTC.
Market Snapshot
Currently, the cryptocurrency landscape is suffering a dip of about 1%. This is quite the change of pace, following a robust surge in the latter half of April, which the market experienced, hitting its peak just towards the end of that month. Right now, the total market capitalisation stands at an impressive $2.94 trillion, but it’s trailing just over 1% lower than the previous week. Notably, privacy-centric coins like Monero and zCash have managed to stay afloat in profit territory, gaining traction after last week’s hacking incident that highlighted their strengths.
In particular, Bitcoin seems to be mirroring trends seen in US stock indices, taking a step back after an earlier spike. This pullback is seen as a healthy cooldown – the cryptocurrency had reached overbought conditions and may need this breather to regroup for further advances.
On the flip side, XRP didn’t quite ride the wave of the recent altcoin rally that rocked late April. It has struggled to break free from its 200- and 50-day moving averages. Currently priced at $2.09, XRP has fallen through crucial support levels that have held strong for the past few months. This movement could lead to significant volatility—up to a whopping 50% shift in either direction if a breakout occurs.
News Developments
CoinShares recently reported that global investments in crypto funds soared by $2.029 billion last week. This was after total inflows of $3.423 billion, with Bitcoin seeing a substantial $1.84 billion infusion. Following Bitcoin, Ethereum gained $149 million, XRP $11 million, Tezos $8 million, and Solana $6 million, all showcasing the renewed interest in the market.
Ethereum appears braced for an uptick in volatility as the Pectra hard fork is set for 7 May. Observers have noticed that the Bollinger bands for the ETH/BTC trading pair have tightened considerably leading up to this event. Analysts from CoinDesk, including Omkar Godbole, suggest that the next big move in ETH will largely rest on how this breakout unfolds.
In terms of Bitcoin supply, 88% remains profitable, though losses seem to be centralised amongst those who bought in when prices were between $95,000 and $100,000. Meanwhile, Glassnode highlighted that this percentage rebounded from its long-term average, indicating a reconfiguration of investor sentiment without leading to widespread capitulation across the market.
Lastly, Strategy firm recently reported acquiring an additional 1,895 BTC, translating to around $180.3 million, with an average buy price of $95,167 each. This brings their total to 555,450 BTC, amassed at an average purchase price of $68,550, with an overall investment value now clocking in at about $38.08 billion.
