The cryptocurrency market is notoriously volatile. Furthermore, it is well-known for hosting turbulence, the majority of which rises to the surface before being reported. Price swings go under the category of volatility, whereas highly publicised events fall under the category of turbulence.
Nevertheless, efforts are being made by BTC and ETH to return to their most recent ATHs. At the time of writing, ETH had dropped by 0.80% and BTC had marginally increased by 1.76% over the previous day. As of right moment, their respective lists are $66,821.59 and $3,277.99.
Events like the 25-year sentence for Sam Bankman-Fried, withdrawals from Bitcoin ETFs, and predictions of rate cuts, to name a few, have caused volatility.
To begin with, Sam Bankman-Fried will undoubtedly serve 25 years in prison for misappropriating about $8 billion in customer funds. He was found guilty of fraud and of creating schemes to use money for things other than what was intended, such as buying real estate or giving to political causes.
The first claims that surfaced caused FTX, which was previously a leading platform in the market, to plummet and collapse. The remaining tokens were impacted by that.
Subsequently, the year 2024 commenced with the anticipation of six rate reductions. That has been changed, though, and by year’s end, the best that can happen is three-quarters of a percentage. May is able to proceed unharmed. The June meeting is when a decision regarding a cut will be made at the latest.
On Tuesday, the S&P fell by 0.72%, while the Nasdaq lost more ground that day, falling by 0.94%. The price of Bitcoin has actually changed as a result of a shift in the rate cut forecast. The US economy appears to be improving, as seen by the growth in US manufacturing in March and the acceleration of the PPI in February. The concern that inflation will rise once again presents a contradiction.
Although ETF outflows have levelled out in the past, concerns have been raised about when the market would calm down by ARK 21Shares, which is expected to record the same. There was a $0.3 million outflow on Tuesday and a $87.5 million outflow the next day. For the first time since the introduction of the Bitcoin ETF to the market, this has surpassed GBTC.
Lastly, a lot of attention was being paid to meme currencies and altcoins. That has weakened as a result of price corrections for meme currencies and a retreat in altcoins. Put otherwise, their listing price is lower even though investor sentiment has changed. AI tokens had gained a lot of traction in their favour. This has also decreased, as seen by the 13.9%, 13.3%, and 18.7% declines in FET, RNDR, and WLD, respectively, during the past seven days.
Blockchain technology and artificial intelligence have come together to form AI tokens. Although they are now declining, the trend may soon reverse.
With the exception of WIF and dogwifhat, meme coins are down. The coin has had a 20% increase in trading over the last seven days, with its market cap last observed surpassing the $4 billion milestone. The weekly sentiment has decreased, and WIF has lost 10.72% of its value in the last day; as of the time this article was written, it was trading at $3.32.
The cumulative effect of these events has caused the price of cryptocurrencies to drop below their most recent high point, and now investors are waiting for the next major event—Bitcoin‘s halving—to propel them higher.
