In the past 24 hours, the prices of major cryptocurrencies such as Bitcoin, Ethereum, and XRP have significantly declined. Leading analysts attribute this to several key factors.
Role of Whale Investors
Analysis of on-chain data indicates that long-term holders have been selling their Bitcoin holdings, contrary to the accumulation by public companies. These actions by large investors have put significant downward pressure on the market.
Bearish Technical Signals
Ethereum and XRP prices followed Bitcoin, forming a bearish continuation pattern. The cryptocurrency market has lost its correlation with major stock indexes and gold, adding to overall market volatility.
Trade Wars and Recession Risks
Following the introduction of new tariffs in the USA, the risk of a recession in global economies has risen. This has led to increased fears among investors, pushing them towards safer assets.
The cryptocurrency market has reached a pivotal point which could lead either to a recovery or further decline. However, the rising gold prices signal a potential recovery for cryptocurrencies in the near future.
