The crypto market recovered over the past 24 hours as prices rose after experiencing significant declines over the past few sessions. Bitcoin (BTC) dipped to a low of $76,982 on Tuesday before rebounding to reclaim $80,000 and reach $83,737 before losing momentum and declining to its current level. The flagship cryptocurrency is up over 2% and trading around $81,700.
Meanwhile, Ethereum (ETH) continues to trade in the red as it struggles to reclaim the $2,000 level. The world’s second-largest cryptocurrency is marginally down and trading around $1,870.
However, Ripple (XRP) has registered a substantial increase and is trading around $2.17, while Solana (SOL) is down almost 1% and trading around $122. Dogecoin (DOGE) is up over 2% and trading around $0.162, while Cardano (ADA) is marginally down and trading at $0.721. Chainlink (LINK), Stellar (XLM), Litecoin (LTC), Toncoin (TON), Polkadot (DOT), and Shiba Inu (SHIB) also registered notable increases.
Crypto Market Chaos As Liquidations Near $1 Billion
The crypto market has registered a significant sell-off with nearly $1 billion in liquidations in 24 hours. The downturn has impacted thousands of traders, with long positions registering the biggest losses. Bitcoin (BTC) and Ethereum (ETH) have fallen to their lowest level in months as investor sentiment wanes amid worsening market conditions. One factor behind the recent drop is the transfer of a large amount of crypto into exchanges. Mt. Gox recently moved a large tranche of BTC to an unknown wallet, triggering speculations of a sell-off. An Ethereum whale also deposited a large amount of ETH in Kraken, adding to market uncertainty. Another holder also offloaded a significant amount of ETH at a loss, likely to avoid a forced liquidation.
Political uncertainty has also dampened investor sentiment and added to market instability. President Donald Trump’s comments about an impending economic downturn have rattled traditional and crypto markets. As a result, stock and crypto markets tumbled. BTC’s decline has also sparked concerns about a deeper decline, with the flagship cryptocurrency hitting a multi-month low before recovering. However, buying pressure remains weak. Investors have been caught off guard by the wave of liquidations, with many expecting the market to continue its rally. However, their positions were wiped out as the market crashed.
Recession Concerns Mount
A recent interview with President Donald Trump has raised the specter of an impending recession, unsettling investors. Nearly all cryptocurrencies registered substantial declines as markets turned bearish, with BTC and ETH hitting multi-month lows. The market volatility is due to aggressive tariff policies adopted by President Donald Trump towards countries like Canada, Mexico, and China. This has sparked concerns about a trade war, which could lead to inflation and increase the cost of goods. As a result, investors are pulling out capital from risk assets and pivoting to safer investments. Trump acknowledged in an interview that an aggressive tariff strategy could lead to a recession, stating the country was entering a “period of transition.”
The White House announcement about a crypto reserve also disappointed markets after it was revealed that the government would not make additional crypto purchases and would only retain the seized assets to populate the reserve. Haider Rafique, the global chief marketing officer at OKX, said he was disappointed by the announcement as it lacked immediate buying pressure.
“While establishing a Bitcoin reserve is a significant milestone, it does not create immediate buying pressure, disappointing those expecting aggressive accumulation.”
FalconX Global Co-Head of Markets, Joshua Lim, stated,
“Now that the industry has its strategic Bitcoin reserve executive order, crypto has one fewer positive forward catalyst to price in, and we’re left at the mercy of macro risk appetites.”
Coinbase Secures Regulatory Approval To Restart India Operations
Cryptocurrency exchange Coinbase is all set to re-enter the Indian market after getting regulatory approval from the country’s Financial Intelligence Unit. The exchange announced the news in a blog post and said it plans to launch initial retail services this year and plans additional investment products in the future.
“India represents one of the most exciting market opportunities in the world today, and we’re proud to deepen our investment here in full compliance with local regulations.”
The platform’s previous attempt to enter the Indian market was unsuccessful, ending in 2022. Coinbase introduced support for India’s hugely popular UPI payment system. However, just three days later, the National Payments Corporation of India refused to approve the exchange’s services. The Reserve Bank of India (RBI) also applied “informal pressure” to stop the exchange’s services.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) reversed its losses on Tuesday as it recovered to retake $83,000 as macroeconomic and geopolitical factors combined, sending prices higher. However, the price is back in the red during the current session, with fears of a dip below $80,000 lingering. The most significant factor contributing to Tuesday’s reversal was Ukraine agreeing to a Trump-administration proposal for a 30-day ceasefire in the war with Russia. Russia has not yet commented on the proposal, and the agreement hinges on the country accepting the ceasefire. However, Ukraine’s agreement was seen as a significantly positive development. As part of the agreement, the US will immediately lift its pause on intelligence sharing and military assistance to Ukraine.
Trade tensions between the US and Canada also eased after Ontario Premier Doug Ford agreed to suspend a 25% electricity export surcharge imposed on several US states. The electricity surcharge was in retaliation to a 25% tariff on Canadian imports by the US. Trump had threatened to double that tariff to 50% in retaliation to Ford’s electricity surcharge. The traditional markets also bounced back, with major stocks trading in the green.
BTC started the previous week with a substantial decline, falling nearly 9% after Sunday’s rally to slip below $90,000 and the 20-day SMA and settle at $86,225. BTC fell to an intraday low of $81,500 on Tuesday as selling pressure intensified. However, it recovered from this level to register an increase of 1.27% and settled at $87,316. Bullish sentiment intensified on Wednesday as the price rose nearly 4% to reclaim $90,000 and settle at $90,639. BTC encountered volatility on Thursday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as BTC registered a marginal decline, slipping below $90,000 and settling at $89,957. Sellers retained control on Friday as the flagship cryptocurrency fell 3.53% to $86,781.
Source: TradingView
BTC remained bearish over the weekend, registering a marginal decline and settling at $86,267. Bearish sentiment intensified on Sunday as the price fell over 6%, slipping below the 200-day SMA and $80,000 and falling to an intraday low of $79,987 before ultimately settling at $80,736. Buyers attempted a recovery on Monday as BTC surged to an intraday high of $84,075. However, it could not stay at this level and ultimately dropped 2.62% to $78,620, but not before hitting a low of $77,414. BTC fell to a low of $76,365 as fears of a deeper correction intensified. However, it recovered from this level as markets rebounded, rising 5.50% to reclaim $80,000 and settle at $82,945. With sellers active at this level, BTC is back in the red during the ongoing session, with the price down nearly 1% and trading around $82,000.
While BTC hit a four-month low this week, Arthur Hayes believes BTC will likely bottom around the $70,000 level, a 36% decline from its all-time high. However, the crypto entrepreneur stated that such corrections are normal in a bull market. Hayes advised crypto traders to remain patient despite the probability of a recession this year. According to Hayes, traditional financial markets would need to experience a sharp decline, accompanied by the failure of major financial institutions. This would prompt central banks to initiate quantitative easing and create an optimal buying opportunity.
“Then you load up the truck. Traders will try to buy the dip. If you are more risk averse, wait for the central banks to ease, then deploy more capital. You might not catch the bottom, but you also won’t have to mentally suffer through a long period of sideways and potential unrealized losses.”
Ethereum (ETH) Price Analysis
Ethereum (ETH) dropped to a low of $1,759 on Tuesday as the market sell-off intensified. However, it recovered from this level to register an increase of over 3%. The world’s second-largest cryptocurrency is trading around $1,900, and a close below this level could indicate a further correction. ETH’s drop towards $1,700 triggered a wave of liquidations, with one ETH whale saving several positions from the brink of a liquidation cascade by depositing 2,000 ETH as collateral and paying $1.5 million worth of the DAI stablecoin at the final hour. The position was less than two minutes away from being liquidated and sold at a MakerDAO auction until the wallet owner deposited additional collateral.
The going has been tough for ETH as it closed below a trendline, indicating that the bull run may be over. ETH registered a significant deadline on Monday despite an impressive rally on Sunday, falling nearly 15% to settle at $2,149. The price fell to an intraday low of $1,996 on Tuesday as selling pressure intensified. However, it recovered from this level to reclaim $2,000 and settle at $2,172 after an increase of 1.03%. Buyers retained control on Wednesday as ETH rose over 3% and settled at $2,242. Sellers returned to the market Thursday as ETH dropped nearly 2% to $2,203. ETH continued to decline on Friday, falling 2.78% and settling at $2,142.
Source: TradingView
Despite the bearish sentiment, ETH recovered on Saturday, registering an increase of almost 3% and settling at $2,204. However, it was back in the red on Sunday, falling over 8% and settling at $2,020. ETH attempted a recovery on Monday as it surged to an intraday high of $2,159 before losing momentum and dropping nearly 8% to slip below $2,000 and settle at $1,865. The price fell to an intraday low of $1,759 on Tuesday but recovered to register an increase of over 3%. However, it could not reclaim $2,000 and ultimately settled at $1,923. The current session sees ETH down 1.44% and trading at $1,898. If ETH closes below its support level, a further downtrend could follow. Buyers will look to retake control and push the price above $2,000.
Solana (SOL) Price Analysis
Solana (SOL) slipped below the 20-day SMA and $150 last Monday after registering a drop of over 20% and settled at $142. It dropped to a low of $130 on Tuesday as selling pressure intensified. However, it rebounded from this level to register an increase of 1.91% and settled at $144. The price pushed higher on Wednesday, rising over 1% and settling at $146. SOL lost momentum after reaching this level and registered a drop of 2.04% on Wednesday and settled at $143. Buyers attempted a recovery on Friday as SOL reached an intraday high of $151 before losing momentum and registering a drop of 2.77% to settle at $139.
Source: TradingView
SOL remained bearish over the weekend, dropping 1.67% on Saturday and nearly 8% on Sunday to end the weekend on a bearish note at $126. Sellers retained control on Monday, with SOL registering a decline of 6.53% to slip below $120 and settle at $118. Despite the overwhelming bearish sentiment, SOL registered a sharp increase on Tuesday, rising nearly 6% to reclaim $120 and settle at $125. The current session sees SOL marginally up as buyers and sellers struggle to establish control. Sellers will look to regain control and drive the price below $120. On the other hand, buyers will look to build momentum and push SOL towards $150.
Aptos (APT) Price Analysis
Aptos (APT) registered a dramatic fall when the markets turned bearish last Monday. As a result, it fell over 15%, slipping below $6 and the 20-day SMA to $5.73. Bearish sentiment intensified on Tuesday as APT fell to an intraday low of $5.05. However, it rebounded from this level to settle at $5.47, ultimately registering a drop of 4.50%. Bullish sentiment returned on Wednesday as APT surged over 13% to reclaim $6, move past the 20-day SMA, and settle at $6.21 after reaching an intraday high of $6.55. However, it lost momentum after reaching this level and dropped 3.55% on Thursday, slipping below $6 and settling at $5.99.
Source: TradingView
APT encountered volatility on Friday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand, and APT rose nearly 3% to $6.16. However, it was back in the red on Saturday, dropping over 3%, slipping below $6 and settling at $5.95. Bearish sentiment intensified on Sunday as APT plunged below the 20-day SMA, falling nearly 6% to 5.61 to end the weekend on a bearish note. The price continued dropping on Monday, falling over 7% and settling at $5.19. Despite the overwhelming bearish sentiment, APT recovered on Tuesday, reaching an intraday high of $5.66 before settling at $5.28, ultimately registering an increase of 1.67%. The current session sees APT down over 2% and trading at $5.16.
Uniswap (UNI) Price Analysis
Uniswap (UNI) has traded downwards since December, going below key support levels and moving averages. A similar story unfolded last week starting with a drop of nearly 14% on Monday, followed by a marginal decline on Tuesday, which saw UNU drop to $7.07 but not before hitting a low of $6.48. The price recovered on Wednesday, rising over 6% to $7.52. However, it was back in the red on Thursday, dropping 5.51% and settling at $7.11. UNI registered a marginal decline on Friday as sellers retained control before recovering on Saturday and settling at $7.15 after an increase of 1.15%.
Source: TradingView
Bearish sentiment intensified on Sunday as UNI fell nearly 11% and settled at $6.39. The price attempted a recovery on Monday as it reached an intraday high of $6.94. However, it lost momentum after reaching this level, ultimately dropping 7.57% and settling at $5.90. UNI recovered on Tuesday despite the overwhelming selling pressure, registering an increase of 3.49% to reclaim $6 and settle at $6.11. The current session sees UNI down 1.54% and trading at $6.01 as sellers look to drive the price toward the $5.50 support level.
Filecoin (FIL) Price Analysis
Filecoin (FIL) is looking to recover after registering a substantial decline over the weekend and Monday. The altcoin registered a sharp decline last Monday, dropping nearly 14%, slipping below the 20-day SMA and settling at $3.06. Sellers dragged the price to an intraday low of $2.77 on Tuesday as bearish sentiment intensified. However, it recovered from this level to reclaim $3 and settle at $3.02, ultimately registering a decline of 1.56%. Buyers returned to the market on Wednesday as FIL rose nearly 4% to $3.13. However, it could not sustain momentum and dropped 1.38% to $3.09 on Thursday.
Source: TradingView
FIL faced volatility on Friday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as FIL registered a marginal increase and settled at $3.11. The price registered a marginal decline on Saturday before dropping nearly 11% on Sunday, slipping below $3 and settling at $2.78. FIL attempted a recovery on Monday as it rose to an intraday high of $2.96. However, it could not stay at this level and ultimately dropped over 5% to settle at $2.64. FIL fell to an intraday low of $2.44 on Tuesday as selling pressure intensified. It recovered from this level to register an increase of 3.60% and settled at $2.73. The current session sees FIL up nearly 1% and trading at $2.76 as buyers look to build momentum and push toward $3.
Axie Infinity (AXS) Price Analysis
Axie Infinity (AXS) dipped below $3 last weekend as bearish sentiment intensified. AXS fell nearly 13% on Monday after failing to move past the 20-day SMA and settled at $3.46. The price fell to an intraday low of $3.19 on Tuesday before recovering to settle at $3.43, ultimately registering a marginal decline. AXS recovered on Wednesday, rising over 4% to $3.58, but fell back in the red on Thursday, falling just over 1% to settle at $3.54. The price encountered volatility on Friday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as AXS registered a marginal decline and settled at $3.52.
Source: TradingView
The price remained bearish over the weekend, dropping over 3% on Saturday and settling at $3.41. Bearish sentiment intensified on Sunday as AXS plunged nearly 10% to $3.07. Buyers attempted a recovery on Monday as AXS rose to an intraday high of $3.25. However, it could not stay at this level and ultimately dropped over 7%, slipping below 3 and settling at $2.86. AXS fell to an intraday low of $2.66 on Tuesday as selling pressure intensified. It recovered from this level to register an increase of over 8% to reclaim $3 and settle at $3.09. The current session sees AXS up over 2% as buyers look to push the price above $3.50.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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