Cryptocurrencies continue to face instability, with Bitcoin and Ethereum witnessing price declines on Wednesday. Bitcoin has lost 0.33%, trading at $65,448, marking the third consecutive day of loss. Ether has also experienced a 0.19% drop, trading at $3,262. Other major cryptocurrencies, such as USD Coin, Ripple, and Cardano, have also recorded losses amid market volatility and macro-economic factors.
Crypto Market Faces Volatility as Bitcoin and Ether Witness Price Dips
The highly volatile nature of the cryptocurrency sector remains unabated, with several major cryptocurrencies struggling to establish stable price levels. On Wednesday, April 3, Bitcoin (BTC) recorded a loss of 0.33 percent, bringing its trading value down to $65,448. This represents a reduction of approximately $654 over the past 24 hours, marking the third consecutive day of price declines for the world's leading crypto asset.
Shivam Thakral, CEO of BuyUcoin, attributed the ongoing price fluctuations to "negative sentiments and selling pressure" surrounding Bitcoin. He highlighted the recent announcements by the Federal Reserve and the planned sale of 51,680.33 BTC from the Silk Road seizure by the US government as contributing factors to the bearish sentiment.
Bitcoin's fellow cryptocurrency, Ether (ETH), also experienced losses on Wednesday, dropping by 0.19 percent to trade at a price point of $3,262. This translates to a decline of approximately $8 over the past 24 hours.
As the crypto market approaches the next Bitcoin halving period, a significant event where the block reward for Bitcoin miners is reduced by half, uncertainty lingers. This impending halving, coupled with macroeconomic factors and evolving industry developments, has introduced additional volatility into the pricing of crypto assets, leading to losses for many.
On Wednesday, several other prominent cryptocurrencies recorded price declines. USD Coin, Ripple, Cardano, Avalanche, and Polkadot all exhibited red on the price chart. Uniswap, Leo, Cosmos, Cronos, and Stellar also faced value drops.
Despite the overall bearish trend, some cryptocurrencies managed to secure gains on Wednesday. Tether, Solana, Binance Coin, Dogecoin, and Shiba Inu all experienced price increases. Other altcoins that recorded profits included Bitcoin Cash, Chainlink, Tron, Litecoin, and Near Protocol.
Market analysts advise investors to exercise caution and conduct thorough research before making any investment decisions in the volatile cryptocurrency market. Cryptocurrency investments carry inherent risks, and investors should carefully consider their financial circumstances and risk tolerance before allocating funds.
