Cryptocurrencies, led by XRP and Dogecoin, experience daily declines as the cryptocurrency surge slows down.
In a Nutshell
- Crypto market's momentum fizzled out, negatively impacting Bitcoin, XRP, and Dogecoin.
- Bitcoin suffered a minor setback, dropping 1.2% to $92,349 after a five-day winning streak.
- Trade war tensions between US and China linger, cast doubt on a swift resolution, and impacted the crypto market.
Revisiting the Scene
Amid an abrupt halt to crypto market's rally, the world's largest digital asset – Bitcoin – experienced a 1.3% loss, setting its price at $92,349 as of publication. Bitcoin saw a brief dip below $92,000 early Thursday morning, preceding a five-day winning streak that reached highs of $94,500.
A more substantial loss was recorded for XRP and Dogecoin, slipping by 5.5% each at time of publication. Although daily losses were incurred, both cryptocurrencies experienced weekly growths of 2.5% for XRP and 10.8% for Dogecoin respectively.
Trade War Shenanigans
The stall in the crypto market's upward momentum was fueled by ongoing uncertainties regarding the U.S.-China trade war. Despite Chinese officials denying current negotiations, Treasury Secretary Scott Bessent admits that the status quo is not sustainable. Meanwhile, the president threatened to introduce reciprocal tariffs on several nations in the coming weeks.
These widespread tariffs exacerbated market fear, causing global stocks to plummet and even driving Bitcoin's price below $75,000 earlier in the month. The volatile economic climate, coupled with the president's vocal criticism of Federal Reserve Chair Jerome Powell, seems to have diminished BTC's bullish momentum.
Silver Linings
Despite the setbacks, the crypto market wasn't completely pessimistic. Establishment of a new consortium, aimed at acquiring Bitcoin, is coming to fruition. The Financial Times reported that Twenty One Capital, comprised of partners such as SoftBank, Tether, and Bitfinex, is launching with a considerable 42,000 BTC war chest.
Moreover, institutional interest in Bitcoin-focused exchange-traded funds (ETFs) has resurfaced. A massive $913 million inflow to Bitcoin ETFs was recorded on Tuesday - the highest since mid-January – demonstrating renewed institutional adoption of cryptos.
Nevertheless, despite recovery, Bitcoin is still trading at a 15% discount to its all-time high of $109,000, as established three months ago.
Radar Roundup
Stay informed with the latest insights from the decentralized prediction market Myriad (launched by Decrypt's parent company, DASTAN). Users forecasted the likelihood of Powell departing the Fed before June at less than 9%.
Sources:
- Tariffs
- China's sale of confiscated cryptocurrencies
- Impact of trade war on crypto markets
- Crypto market response to trade war
- Bitcoin drops below $77,000 in April
- The ongoing trade war tension between the US and China potentially prolongs the negative impact on the cryptocurrency market.
- Bitcoin, the world's largest digital asset, experienced a 1.3% loss, dropping to $92,349 despite a brief high of $94,500 during a five-day winning streak.
- XRP and Dogecoin suffered more substantial losses, each dropping by 5.5% as of publication, but managed weekly growths of 2.5% for XRP and 10.8% for Dogecoin.
- The stalled crypto market momentum can be attributed to the uncertain outlook on the US-China trade war, despite Chinese officials denying current negotiations.
- Amidst economic uncertainty and geopolitical tensions, a new consortium, Twenty One Capital, is being established with a significant BTC war chest of 42,000 coins, comprised of partners like SoftBank, Tether, and Bitfinex.
- Institutional interest in Bitcoin-focused exchange-traded funds (ETFs) has resurfaced, with a $913 million inflow to Bitcoin ETFs on Tuesday, demonstrating renewed institutional adoption of cryptos.
- According to the decentralized prediction market Myriad, the likelihood of Federal Reserve Chair Jerome Powell departing the Fed before June is less than 9%.
- Despite recovery, Bitcoin is still trading at a 15% discount to its all-time high of $109,000, as established three months ago. The volatile economic climate and ongoing trade war uncertainties seem to have diminished BTC's bullish momentum.
