The cryptocurrency market has experienced another significant price decline in the last 24 hours. This has led to a drop in market valuation by 4.37%, decreasing from $2.77 Trillion to $2.67 Trillion, accompanied by a trading volume of $137.24 billion. In line with this, Bitcoin, the largest cryptocurrency by market cap, has tested its crucial support level at $82,000.
Following this, the altcoin sector, led by Ethereum ($ETH) and Ripple ($XRP), has also faced a bearish trend over the past day. Amidst the rise of FOMO and FUD in the crypto landscape, marketers are speculating about the underlying causes of the recent price movements.
While some believe that Trump’s tariff announcement could have triggered the global market downturn, others cite a combination of factors including on-chain data, technical sentiments, and political influences that may have contributed to the current market conditions.
This article aims to delve into the potential reasons behind the downturn of Bitcoin, Ethereum, and XRP cryptocurrencies.
Crypto Volatility Hits New Heights!
In the last 45 days, the cryptocurrency market has become increasingly volatile, with the Fear & Greed index falling to 24, indicating a growing sense of fear among investors. While Bitcoin dominance remains above 61%, Ethereum’s share has plummeted to 8.21%, and the altcoin index has dropped to 14.
Here are some factors contributing to today’s crypto market crash:
- Trump’s Tariff Announcement: Many speculate that this announcement has played a key role in the recent downturn of the crypto market. Reports from leading data sources suggest that the likelihood of a recession in major economies has significantly increased.
- On-chain Data: Various on-chain analytics platforms show a considerable decline in the number of active wallet addresses and new wallet creations. This suggests a slowdown in the accumulation of these digital assets by new investors and traders, indicating that many are waiting to liquidate their holdings at specific price points.
Moreover, whale activity has turned negative, with many large holders and dormant wallets beginning to offload significant quantities of their assets.
- Bitcoin & Ethereum ETFs: Another major factor contributing to the downward trend is the underwhelming performance of both Bitcoin and Ethereum ETFs. Both ETFs ended March on a bearish note and have continued this trend into the current month.
Let’s now examine the present market trends of the three largest cryptocurrencies by market capitalization.
BTC, ETH, & Ripple Breach Critical Support Levels!
Bitcoin is currently trading below the $82k level, reflecting an intraday decline of 5.61%. Consequently, the Year-to-Date (YTD) return for this coin has fallen to -13.43%. Following Bitcoin’s lead, Ethereum is now trading under its essential threshold of $1,800 with a volume of $26.23 billion.
Conversely, XRP continues its downward trajectory, having broken through its significant support level of $2. Given the current market sentiments, the crypto sector may remain under pressure throughout the week.
Conclusion:
The cryptocurrency market is on the brink of experiencing significant price movements that could either propel the industry toward new all-time highs (ATH) or lead to even lower targets. The prevailing volatility in the crypto space makes it extremely challenging to draw accurate conclusions, as numerous factors directly or indirectly impact this market.
Also Read: Crypto Market Crash: No Bitcoin in Trump’s Tariff speech
