Bitcoin and other major cryptos like Ether, XRP, Solana, Dogecoin and Cardano also dropped over 3% early Wednesday as traders booked profits after Tuesday’s price rally. The total crypto market cap fell over 4% in the past 24 hours to $2.73 trillion as per data from Coingecko.
Bitcoin was down to $83,600 from $84,200 while Ether and Cardano fell as much as 5%. XRP continued to drop and it may further face more downturns. However, the XRP ETF filing by ProShares was some positive news as it plans to launch it on April 30. BNB is also down around 2%, currently trading at $578.
Investors Still Cautious
The movements in crypto market shows that investors are still cautious and avoiding risk due to global economic issues and upcoming regulatory changes.
According to data from CryptoQuant, daily sales by large Bitcoin investors have now dropped from 800,000 BTC in late February to about 300,000 BTC now, as they have already sold most of their coins at loss. Analyst Ali Martinez highlighted in a recent post that whales have been taking profits during the recent rally, offloading over 29,000 BTC since April 9. In a recent X post he also shared that over $600 million in short positions could get liquidated if Bitcoin bounces back to $86,900.
There has been a drop in accumulation by large investors and their holdings have declined by about 30K BTC over the past week. Meanwhile, major cryptocurrencies slumped as Hong Kong stocks fell 2.9% despite strong growth in China’s economy. The ongoing tariff troubles continue to push traders to avoid risk assets, impacting crypto markets.
Amid market uncertainty, stablecoins like Tether (USDT) and USD Coin (USDC) have held their ground. Tether is currently trading at $0.9999, with a market cap of $144.56 billion. While USDC is currently trading at $1. Stablecoins are becoming essential for liquidity and security during volatile times in crypto like now.
Nvidia Drop Impacts Crypto Prices
Markets saw a downturn on Tuesday evening after Nvidia Stock dropped, which was triggered due to a $5.5 billion charge as a result of US government’s decision to ban the company from selling H20 chip sales to China. As a result, Bitcoin fell to $83,600 while XRP and Cardano followed suit falling over 2% and 4% respectively.
Besides, AI coins also struggled as Nvidia’s stock dropped 8% to $89.10. The company revealed that it expects to loose $5.5 billion in Q1 due to restrictions on its H20 chip exports to China.
Markets Await Powell’s Speech Amid Rate Cut Speculation
Fed Chairman Jerome Powell is set to speak today about the US economy as the markets watch closely for any signs of a potential rate cut sooner than expected due to the ongoing tariff concerns and the rising concerns about a recession. Research suggests that the trade war and Trump tariffs might lead to lower inflation which may give opportunity to Fed to cut rates.
There are rising fears of recession. Although some think that markets have already priced in the risks, the worst may still not be over, claim analysts. Bitcoin’s appeal as a decentralised asset is rising amid traditional volatility. However, Trump’s policies could help drive Bitcoin gains although market risks remain high.
Coinbase’s recent report shows that the crypto markets excluding Bitcoin have seen a drop of 41% from its December peak. Besides, VC investment in crypto is also down by 50-60% from 2021-22 highs. However, it predics that the crypto market will recover in Q3 after hitting its lowest point by mid-to-late Q2 2025. They recommend being careful and adaptable as market liquidity weakens and investors become less willing to take risks.
