What You Need to Know:
- Bitcoin reported a 3% decline in 24 hours; altcoins like XRP, BNB, and SOL fell by 4-5%.
- Over $300 million in long positions have been liquidated on crypto exchanges.
- Conversely, gold-backed tokens such as PAXG and XAUT saw gains amidst market volatility.
Cryptocurrency valuations have sharply decreased in recent hours, with Bitcoin (BTC) suffering a 3% drop lately, while significant altcoins, including XRP, BNB, and SOL, recorded declines between 4% and 5% across the same timeframe. The broader cryptocurrency market, tracked by the CoinDesk 20 Index (CD20), experienced a 3.3% drop in value.
This unexpected decline has pushed Bitcoin’s weekly performance down by 1.7%, with the CD20 also witnessing a nearly 5% loss.
Over the past 24 hours, more than $300 million worth of long positions faced liquidation on centralized cryptocurrency exchanges, raising concerns among traders about future market stability. Additionally, $38.8 million in short positions were also liquidated during this timeframe, as reported by CoinGlass.
The downturn seems indicative of a broader movement away from risk as investors brace for the potential effects of President Donald Trump’s upcoming reciprocal tariffs, which are anticipated to begin on April 2, especially following the recent release of higher-than-expected consumer data.
This week has notably seen consumer confidence metrics drop significantly below expected levels, with the future expectations index plummeting to a 12-year low—a concerning sign as it aligns closely with typical recession indicators.
This mix of economic signals has prompted many investors to lessen their risk exposure, initiating a flight towards safer assets. CoinDesk Data’s latest report points out that gold-backed cryptocurrencies are gaining ground from this risk-off strategy, surpassing a $1.4 billion market cap in March.
Despite the CD20’s decrease of over 3% in the last 24 hours, tokens like PAXG and XAUT have risen by 0.7%, with PAXG trading over $3,100. These assets have recorded an impressive 18% increase year-to-date, contrasting sharply with Bitcoin’s decline of 12.5% and the CD20’s fall of 28% for the same period this year.
