Cryptocurrency markets are currently experiencing a significant decline, triggered by a combination of macroeconomic factors and general risk aversion among investors.
The cryptocurrency markets have experienced a significant decline in recent hours. Bitcoin, the leading cryptocurrency, has fallen by about 3% and is now trading at $82,000. Other major altcoins such as XRP, BNB, and SOL are also recording losses of between 4% and 5%. The broader market, represented by the CoinDesk 20 Index (CD20), has lost about 3.3% of its value during this period.
This development is part of a broader risk-off movement among investors. Uncertainty about the impact of the reciprocal tariffs announced by President Donald Trump, which are set to take effect on April 2, has unsettled the markets. These concerns were further exacerbated by the release of higher-than-expected core PCE data.
In addition to economic uncertainty, consumer confidence has experienced a further decline, with the future expectations index falling to a 12-year low. These factors have led to an increased exit from risky assets as investors seek safer alternatives.
Interestingly, gold-backed cryptocurrencies have benefited from this risk aversion. While the CD20 index has fallen over 3%, tokens such as PAXG and XAUT have gained 0.7% and are trading above $3,100. These tokens have risen by more than 18% since the beginning of the year, while Bitcoin has fallen 12.5% ​​and the CD20 index has fallen 28%.
The decline in the crypto markets is also being exacerbated by the liquidation of long positions on centralized cryptocurrency exchanges. In the last 24 hours, over $300 million in long positions have been liquidated, while $38.8 million in short positions have been liquidated. These liquidations contribute to volatility and uncertainty in the markets.
The current situation demonstrates how strongly the cryptocurrency markets are influenced by macroeconomic developments and general investor sentiment. While some investors are hoping for a recovery, uncertainty remains high, and many are looking for more stable investment opportunities.
[newsletter_form lists="1"]
