Altcoins Crater as Crypto Market Reeling

The cryptocurrency market remains volatile, with Bitcoin falling 1.62% to $64,354 on April 4th. Ether experienced a 2.15% decline, trading at $3,190. Altcoins like Solana, Ripple, Dogecoin, and Cardano also incurred losses. Despite the bearish trend, Binance Coin, USD Coin, and Monero registered gains. Market analysts anticipate increased volatility ahead of Bitcoin's halving later this month due to supply dynamics shifts.

Crypto Market Turmoil Intensifies, Altcoins Suffer Heavy Losses

As the cryptocurrency market's volatility reaches new heights, a majority of altcoins face a relentless barrage of losses, leaving investors reeling. On Thursday, April 4, Bitcoin, the undisputed leader of the crypto realm, succumbed to a 1.62 percent plunge, dragging its trading value down to $64,354. This precipitous drop of $1,134 over the past 24 hours has sent shockwaves throughout the industry.

Market analysts predict that Bitcoin's upcoming halving, scheduled for later this month, will exacerbate the volatility in the coming weeks. This significant event, which occurs roughly every four years, reduces the supply of new Bitcoins entering the market by half. Shivam Thakral, CEO of BuyUcoin, believes that the halving's impact on supply dynamics will fuel further market uncertainty.

"Bitcoin has witnessed a sharp decline in price momentum due to negative net flows into spot ETFs," Thakral explained. "These spot ETFs played a pivotal role in the rallies witnessed during the first quarter of 2024. With just a fortnight remaining until the halving, we anticipate increased volatility as investors navigate this pivotal supply shift."

Ether, the second-largest cryptocurrency, has also fallen victim to the market's turmoil. As of Thursday, April 4, Ether's price had plummeted 2.15 percent, trading at $3,190. This decline of $72 over the past 24 hours has dampened the spirits of Ether holders.

"Ether, similar to Bitcoin, has been trading sideways in the short term," the CoinDCX markets desk stated. "Holding above $3,200 will be crucial for Ether's stability. Tomorrow's announcement of the US monthly unemployment rate could introduce additional volatility to the market."

The contagion of losses has spread to numerous other altcoins, including Solana, Ripple, Dogecoin, Cardano, Avalanche, Shiba Inu, Bitcoin Cash, and Polkadot. Tron, Polygon, Litecoin, Near Protocol, Uniswap, Leo, and Cosmos have also suffered declines.

Amid the market turmoil, a glimmer of hope emerged with Binance Coin, USD Coin, Monero, and Bitcoin SV defying the downward trend and posting gains.

"While the possibility of a Fed rate cut in June has tempered gains, the steady increase in stablecoin supply provides a sense of comfort to Bitcoin enthusiasts," Rajagopal Menon, Vice President of WazirX, said.

As of today, the overall crypto market cap has endured a 0.93 percent dip over the past 24 hours, settling at $2.47 trillion.

It is imperative to emphasize that cryptocurrencies are unregulated digital assets that are not considered legal tender. Investing in cryptocurrencies carries inherent risks, and investors should exercise caution and conduct thorough research before committing any funds. The information provided in this article should not be construed as financial advice or an endorsement of any specific cryptocurrency.