18 hours ago
An oversold market and reactions to U.S. tariffs may be a thing of the past with traders now eying new economic data and rate cuts in the coming months — with expectations of a bitcoin bounce in the near term. Crypto markets saw high volatility on Wednesday and Thursday in the run-up to the tariff announcement, where President Donald Trump levied a minimum 10% fee on all imports to the country. Major tokens bitcoin (BTC), ether (ETH), Solana’s SOL, xrp (XRP), and others, zoomed ahead of the speech and slumped as global markets fell, reversing all gains from the start of the week. Markets have since shown an uptick in prices on Friday morning, with BTC steady above $83,100, ETH retaking $1,800 and XRP, SOL and ADA rising over 2%. Ahead of Trump’s speech, investors transferred larger volumes of Bitcoin, ETH, and XRP into exchanges, suggesting a growing intent to sell, per a CryptoQuant note shared with CoinDesk on Thursday. Bitcoin transactions surged to as much as 2,500 BTC in a single block just hours after Trump began speaking. In the U.S., Coinbase also saw a rise in bitcoin deposits, particularly from large holders. Similarly, ETH inflows into exchanges spiked to an hourly peak of approximately 80,000 ETH. XRP transfers into Binance jumped to 130 million in one hour, up from under 10 million XRP per hour throughout most of the previous day. These rising exchange inflows reflected investor willingness to exit positions amid growing economic uncertainty, CryptoQuant said, with demand for Bitcoin and ETH declining in the perpetual futures market as traders closed their long positions to take profits. Chart But with headwinds behind and a new economic data set to be released later Friday could provide the impetus for a short-term relief in markets. Attention is on the non-farm payroll report scheduled for a Friday release. The monthly U.S. economic indicator released by the Bureau of Labor Statistics shows the change in employment, reflecting job creation, unemployment trends, and wage growth, offering insight into economic health. Markets react strongly to NFP data: a higher-than-expected report can boost stocks and the dollar, signaling growth, while a weak report may spark sell-offs and lower yields, hinting at slowdown or recession risks. Traders use it to gauge Federal Reserve policy moves, amplifying its impact. “Investors are bracing for signs of softness in the U.S. labour market,” Singapore-based QCP Capital said in a Telegram broadcast earlier Friday. “ A weaker-than-expected print would bolster the case for further Fed rate cuts this year, as policymakers attempt to cushion a decelerating economy.” Data shows markets are pricing in four rate cuts in 2025 — 0.25 bps each in June, July, September and December. Rate cuts occur when a central bank, like the Federal Reserve, lowers interest rates to stimulate economic growth by making borrowing cheaper. Bitcoin, and the broader market, tend to react positively to rate cuts, as lower rates reduce the appeal of traditional investments like bonds, driving investors toward alternatives like BTC. Additionally, a weaker dollar can enhance BTC’s value as a hedge against inflation or currency devaluation. QCP Capital said it continues to observe elevated volatility in the short term, with more buyers of downside protection. “That said, with positioning now light and risk assets largely oversold, the stage may be set for a near-term bounce,” the fund said.
CoinDesk
You can visit the page to read the article.
Source: CoinDesk
Tags :
Markets Bitcoin XRP Trading
Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
Ethereum Whales Accumulate 130,000 ETH in a Single Day as Price Nears Key Support
In a significant shift of market behavior, Ethereum whales have accumulated ETH worth just over $234.8 million in a single day as the cryptocurrency approaches a critical support level. This substantial purchase, reported by crypto analytics platform IntoTheBlock on Thursday, marks a dramatic reversal from recent selling trends. “Ethereum whales are buying the dip, with the largest $ETH wallets adding over 130k ETH to their wallets yesterday,” the firm tweeted. This accumulation represents a stark turnaround after months of selling pressure. According to data from Sentiment highlighted by analyst Ali Martinez on April 2, whales had sold approximately 760,000 Ethereum over the past two weeks. This selling pattern included a notable transaction earlier this week when a long-dormant Ethereum wallet, inactive for seven years, liquidated its entire holdings from 2017, securing a profit exceeding $8.6 million. Notably, Ether’s market sentiment has remained predominantly bearish in recent weeks, with short-term holders selling at a loss. Several factors have contributed to recent selling pressure, including significant moves by the Ethereum Foundation (EF). According to a recent report by CoinGecko analysts, EF sales of ether typically cause immediate market reactions, with prices growing by an average of 1.3% over the subsequent seven days. However, in 47.6% of cases, these sales resulted in price decreases, while 52.4% led to increases, suggesting an inconsistent correlation between institutional selling and market performance. The Foundation’s selling activity has faced criticism from community members questioning the transparency of its financial operations and decision-making processes. In response to these concerns, the EF has recently shown signs of changing its approach, opening a multisig wallet on the Safe platform in January to participate in the DeFi ecosystem and subsequently transferring approximately $120 million worth of ETH to major DeFi protocols, including Aave, Spark, and Compound. Despite the price volatility, Ethereum’s ecosystem shows strength in other areas. In March, after six months, Ethereum reclaimed its position as the leader in decentralized exchange (DEX) trading volume, reaching $64.6 billion and surpassing Solana by 22%. Uniswap and Fluid have been major contributors to this success. That said, technical analysts are closely monitoring ETH’s price, which is currently sitting on a 5-year trendline that has acted as strong support multiple times in the past, within a potential triangle pattern. A bounce from these levels could propel the price toward the $3,900 resistance level. According to analyst Cryptolycus, “ETH is at a critical zone” with the strongest support level around $1,650. He noted that breaking below could signal a deeper correction toward the $1,500-$1,300 range. However, if Ethereum holds support and reclaims levels above $2,100, a bullish reversal could push prices above $3,500 by Q4 2025. “This is a MAKE-or-BREAK moment for Ethereum,” he stated. At press time, ETH was trading at $1,818, reflecting a 1.73% surge in the past 24 hours. CoinDesk
Coinbase Launching US Regulated 24/7 Bitcoin Futures
Coinbase is preparing to launch U.S.-regulated, 24/7 bitcoin and ethereum futures, aiming to modernize trading access and introduce perpetual-style contracts amid rising demand. Coinbase Sets May 9 Launch for Regulated 24/7 Bitcoin and Ethereum Futures Trading in US Crypto exchange Coinbase (Nasdaq: COIN) announced on April 4 that it will introduce the first U.S.-regulated 24/7 CoinDesk
