Key Points:
- Bitcoin and other major cryptocurrencies have decreased by over 3% due to profit-taking following a rally earlier this week.
- Despite positive developments regarding XRP ETFs, prices for XRP are projected to continually decline.
- Large-scale Bitcoin selling by notable investors has reduced, though accumulation remains insufficient.
Bitcoin (BTC) and other significant tokens have experienced a drop exceeding 3% as profit-taking ensued after Tuesday’s substantial gains. The total cryptocurrency market value diminished by 3.3% within the last 24 hours, with Bitcoin falling to around $83,500 from a previous high exceeding $84,200. Ether (ETH) and Cardano’s ADA also faced losses of up to 5%, marking the most significant declines among major coins.
XRP’s decline seems to be consistent, with price trends indicating a potential downward movement in the near future. However, positive news has emerged from ProShares, which revised its spot XRP ETF filing intended for the U.S. market, eyeing a launch on April 30.
On the other hand, large Bitcoin investors are easing off sales as they absorb losses. Analysis from CryptoQuant revealed that sales dipped from 800,000 BTC in late February to only about 300,000 BTC currently per day.
“The selling has slowed down as these investors have been realizing losses since late February amid low prices,” analysts mentioned. “Nonetheless, accumulation among larger investors remains weak with holdings down by about 30K BTC last week, marking a drastic decline from a monthly accumulation rate of 2.7% at the end of March to only 0.5%, the slowest rate since February 20.”
This downturn coincides with a fall in Chinese stocks in Hong Kong, where losses reached 2.9% after the recent opening, despite the economy of China growing by 5.4% in Q1.
Concerns regarding tariff effects continue to loom over traders, contributing to a risk-averse approach that impacts cryptocurrency markets.
“There is no doubt that fears of a U.S. recession are mounting, with major institutions sharply adjusting their forecasts,” James Toledano noted in correspondence with CoinDesk. “Economic growth is projected to stall somewhere between 0.1% and 1%, with many asserting that these risks have already been integrated into equity prices, but I suspect we may not have reached the bottom yet.”
“Nonetheless, Bitcoin’s attractiveness as a decentralized asset appears to be increasing, particularly as traditional markets experience volatility. While the policies of Trump have instigated considerable macroeconomic uncertainty, they may inadvertently be driving Bitcoin’s rise, though risks persist for all markets, including crypto,” Toledano added.
