XRP and BNB Rise as Bitcoin Approaches $90,000 After Market Drop
Bitcoin (BTC) approached $89,000 after a low of $86,200, indicating a slight recovery in market sentiment. Key tokens like XRP and BNB saw rebounds, with XRP rising 3% and BNB and Solana's SOL increasing by 5%. Other cryptocurrencies such as Dogecoin (DOGE) and Cardano’s ADA gained 1.2%, while Tron’s TRX fell by 5%.
Overall market capitalization dropped 10% on Tuesday, resulting in losses exceeding $1.2 billion on bullish bets. A CoinDesk analysis suggested that recent overselling might lead to short-term relief.
Macro Outlook
- Over $1 billion exited bitcoin ETFs in two weeks, contributing to Tuesday's market panic.
- A stronger yen has also pressured risk assets.
- Predictions for U.S. Federal Reserve rate cuts have increased, with a 30% chance of a May cut.
- U.S. consumer confidence fell to its lowest since August 2021.
Traders Remain Cautious
- Traders expect new dollar inflows to primarily target BTC.
- BTC dipped below $90,000 for the first time in a month, triggering over $200 million in liquidations.
- Market sentiment is affected by geopolitical tensions, including tariffs imposed by Trump.
- QCP Capital noted that rising BTC dominance may indicate saturation in institutional demand.
- Companies like Strategy (formerly MicroStrategy) are key drivers of BTC demand but may struggle to justify further purchases if prices do not increase.