The crypto market experienced a decline on Wednesday, with Bitcoin and other major cryptocurrencies like Ether, XRP, Solana, Dogecoin, and Cardano dropping over 3%. This drop came after a price rally on Tuesday. The total crypto market cap also fell over 4% in the past 24 hours to $2.73 trillion according to data from Coingecko.
Bitcoin fell to $83,600 from $84,200, while Ether and Cardano saw a decrease of up to 5%. XRP continued to drop and may face further downturns. However, there was some positive news as ProShares plans to launch an XRP ETF filing on April 30. BNB also experienced a 2% decrease and is currently trading at $578.
Investors remain cautious in the crypto market due to global economic issues and upcoming regulatory changes. Large Bitcoin investors have been selling their coins at a loss, with daily sales dropping from 800,000 BTC in late February to about 300,000 BTC now. Whales have been taking profits during the recent rally, offloading over 29,000 BTC since April 9. There has also been a decline in accumulation by large investors, with their holdings decreasing by about 30,000 BTC over the past week.
Stablecoins like Tether (USDT) and USD Coin (USDC) have remained stable during this market uncertainty. Tether is currently trading at $0.9999 with a market cap of $144.56 billion, while USDC is trading at $1. These stablecoins provide liquidity and security during volatile times in the crypto market.
Nvidia’s stock drop also had an impact on crypto prices. The company revealed that it expects to lose $5.5 billion in Q1 due to restrictions on its H20 chip exports to China. As a result, Bitcoin fell to $83,600, and XRP and Cardano also saw decreases.
Investors are eagerly awaiting Fed Chairman Jerome Powell’s speech about the US economy. There are concerns of a potential rate cut sooner than expected due to ongoing tariff concerns and rising fears of a recession. The trade war and Trump tariffs may lead to lower inflation, which could give the Fed an opportunity to cut rates.
Coinbase’s recent report shows that the crypto markets, excluding Bitcoin, have seen a 41% drop from its December peak. VC investment in crypto is also down by 50-60% from 2021-22 highs. However, Coinbase predicts that the crypto market will recover in Q3 after hitting its lowest point by mid-to-late Q2 2025. They recommend caution and adaptability as market liquidity weakens and investors become less willing to take risks.
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