Market Overview: Ether and Bitcoin Slide Amid Ongoing Crypto Sell-Off
Ether (ETH) has experienced a significant downturn, continuing its multi-day slide with a sharp 7% drop in just 24 hours. This sharp decline adds to the prolonged sell-off in the cryptocurrency market, which shows no signs of relenting. Meanwhile, Bitcoin (BTC) has been fluctuating between $89,000 and $82,500 during U.S. trading hours on Wednesday, managing a slight recovery in early Asian trading, hovering just above $86,000.
The broader cryptocurrency market, as monitored by CoinDesk 20 (CD20) — an index tracking the liquidity of the largest digital tokens — has also taken a hit, falling over 3%. Major tokens, including XRP, BNB Chain’s BNB, Cardano’s ADA, and dogecoin (DOGE), have experienced declines of up to 4%. This downturn has resulted in bullish positions in futures trading for major cryptocurrencies recording over $600 million in liquidations.
In contrast, a few tokens have defied the trend, with Litecoin (LTC) and Aptos (APT) rising over 10% each. The surge in APT is attributed to the registration of a “BITWISE APTOS ETF” in Delaware, USA, along with circulating rumors regarding a potential Litecoin ETF. However, market sentiment remains cautious, as traders are skeptical about a sustained rally in LTC. Ben Yorke, VP of Ecosystem at WOO, expressed doubts in a Telegram message, stating: “It’s unlikely that institutional investors would have long-term conviction in the Bitcoin clone, as it offers no yield, utility, or organic demand outside of ETF approval speculation.”
Yorke further added, “This would likely result in a ‘sell the news’ scenario, as investors look to shift their focus towards more current trends and future ETF rumors.” The losses observed in the crypto markets closely mirrored those in U.S. equities, particularly after disappointing earnings reports from technology giant Nvidia failed to impress investors.
In an additional note, a recent research report from the New York Fed highlighted that President Donald Trump’s latest tariffs on imports from China are having a more pronounced impact on the American economy than initially anticipated. The report indicated a notable discrepancy in U.S. imports from China based on the reported figures from both nations.
Market observers are now looking for macroeconomic indicators that could signal a potential rally for Bitcoin. Chris Yu, Co-Founder and CEO of SignalPlus, commented on the situation in a Telegram message, stating, “The Fed is not a player at this juncture, as rate cuts are likely to be muted against persistent inflation. Additionally, the aggressive U.S. administration will continue to prioritize geopolitical tensions.” He further noted, “Crypto-friendly policies and frameworks are likely to take time before they translate into concrete initiatives, while a decline in implied BTC volatility, coupled with falling prices, is a concerning sign that speculators may be giving up on hopes for higher prices in the near term.”
