Ethereum, XRP extend losses as crypto sell-off deepens
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The cryptocurrency market continued its painful week on Thursday, with Ether (ETH) leading the decline after falling 7% in the past 24 hours. The sell-off has shown no signs of easing, as Bitcoin (BTC) briefly recovered from its Wednesday trading range of $89,000 to $82,500, bouncing back slightly above $86,000 in early Asian hours. However, broader market sentiment remains weak, with the CoinDesk 20 Index (CD20) tracking a 3% drop across major tokens.
XRP, Binance’s BNB, Cardano’s ADA, and Dogecoin (DOGE) all saw losses of up to 4%, while futures traders endured over $600 million in liquidations on bullish bets across the largest cryptocurrencies.
Notably, Litecoin (LTC) and Aptos (APT) were among the few assets in positive territory, both surging over 10%. Aptos saw renewed interest following the registration of a "BITWISE APTOS ETF" in Delaware, fueling speculation over institutional interest. Similarly, rumors of a potential Litecoin ETF boosted LTC, though skepticism remains over its long-term viability.
Ben Yorke, VP of Ecosystem at WOO, cautioned against reading too much into the Litecoin rally, stating that institutional investors are unlikely to develop long-term conviction in a “Bitcoin clone” that lacks yield, utility, or organic demand. He suggested that any ETF approval would likely trigger a "sell the news" event, with investors rotating into assets tied to more relevant trends.
Crypto Tracks U.S. Equities as Macro Uncertainty Weighs
Losses in crypto markets have mirrored declines in U.S. equities, where Nvidia’s underwhelming earnings failed to reignite risk appetite. At the same time, new research from the New York Fed indicated that Trump’s latest tariffs on Chinese imports are having a greater-than-expected impact on the U.S. economy.
With macroeconomic headwinds persisting, market participants are now looking for catalysts to reignite a Bitcoin rally. However, Chris Yu, Co-Founder and CEO of SignalPlus, argues that the Federal Reserve is unlikely to play a role in the near term, as rate cuts remain uncertain due to persistent inflation. Meanwhile, the Biden administration's aggressive trade policies are expected to keep geopolitical tensions at the forefront, further dampening investor sentiment.
Yu also pointed to declining implied volatility in Bitcoin, a sign that speculators may be capitulating on the prospect of higher prices in the near term.
Outlook: Searching for a Catalyst Amidst Uncertainty
With no immediate policy shifts expected and institutional adoption still lagging, crypto markets remain vulnerable to further downside pressure. Traders are now watching macroeconomic signals for any signs of relief, while institutional interest in ETFs could provide selective opportunities in tokens like Aptos. However, until broader sentiment shifts, the crypto market may continue to struggle against the weight of economic uncertainty and risk aversion.
XRP, Binance’s BNB, Cardano’s ADA, and Dogecoin (DOGE) all saw losses of up to 4%, while futures traders endured over $600 million in liquidations on bullish bets across the largest cryptocurrencies.
Notably, Litecoin (LTC) and Aptos (APT) were among the few assets in positive territory, both surging over 10%. Aptos saw renewed interest following the registration of a "BITWISE APTOS ETF" in Delaware, fueling speculation over institutional interest. Similarly, rumors of a potential Litecoin ETF boosted LTC, though skepticism remains over its long-term viability.
Ben Yorke, VP of Ecosystem at WOO, cautioned against reading too much into the Litecoin rally, stating that institutional investors are unlikely to develop long-term conviction in a “Bitcoin clone” that lacks yield, utility, or organic demand. He suggested that any ETF approval would likely trigger a "sell the news" event, with investors rotating into assets tied to more relevant trends.
Crypto Tracks U.S. Equities as Macro Uncertainty Weighs
Losses in crypto markets have mirrored declines in U.S. equities, where Nvidia’s underwhelming earnings failed to reignite risk appetite. At the same time, new research from the New York Fed indicated that Trump’s latest tariffs on Chinese imports are having a greater-than-expected impact on the U.S. economy.
With macroeconomic headwinds persisting, market participants are now looking for catalysts to reignite a Bitcoin rally. However, Chris Yu, Co-Founder and CEO of SignalPlus, argues that the Federal Reserve is unlikely to play a role in the near term, as rate cuts remain uncertain due to persistent inflation. Meanwhile, the Biden administration's aggressive trade policies are expected to keep geopolitical tensions at the forefront, further dampening investor sentiment.
Yu also pointed to declining implied volatility in Bitcoin, a sign that speculators may be capitulating on the prospect of higher prices in the near term.
Outlook: Searching for a Catalyst Amidst Uncertainty
With no immediate policy shifts expected and institutional adoption still lagging, crypto markets remain vulnerable to further downside pressure. Traders are now watching macroeconomic signals for any signs of relief, while institutional interest in ETFs could provide selective opportunities in tokens like Aptos. However, until broader sentiment shifts, the crypto market may continue to struggle against the weight of economic uncertainty and risk aversion.