The cryptocurrency market experienced a continued bearish sentiment on Saturday, following a lackluster performance in the Western financial markets on Friday. The total crypto market cap dropped by nearly 5 percent in the past 24 hours, settling at around $2.813 trillion.
Bitcoin (BTC) saw a 3 percent decline over the same period, with its price hovering around $83,719 during the early London session on Saturday. Ethereum (ETH) also experienced a 2.3 percent drop, trading at approximately $1,878 at the time of writing. XRP, on the other hand, shed over 5 percent in the last 24 hours, with its price resting at about $2.14.
The decline in the wider altcoin market can be attributed to a significant decrease in demand for crypto assets in recent days. Data analysis shows that Bitcoin demand is currently contracting at a higher rate than seen in December 2023. Additionally, the overall cash inflow to altcoins, particularly Ethereum and XRP, has decreased notably. U.S. spot Ether ETFs are expected to close March with the largest cash outflow since August 2024, totaling over $400 million. Whale investors have also been increasing their activity, potentially moving capital to gold and stablecoins markets for protection.
As the 2025 cryptocurrency bull market reaches a critical juncture, there are concerns about whether there will be a V-shaped recovery or further correction in the coming months. With the implementation of U.S. tariffs on April 2 looming, the demand for crypto assets could remain subdued, leading to continued bearish sentiment.
Market analyst Peter Brandt has noted that Bitcoin has confirmed a downward trend after breaking below a bearish flag in recent days. He also suggested that XRP price could potentially drop to $1.07 if buyers fail to support the $3 level.
In conclusion, the cryptocurrency market is facing a challenging period as it grapples with declining demand and uncertain market conditions. Investors and traders will need to closely monitor developments and be prepared for potential further corrections in the near future. Stay informed with the latest news, expert analysis, and real-time updates on Bitcoin, altcoins, DeFi, NFTs, and more to navigate the evolving crypto landscape effectively.