Why Bitcoin, Ethereum, and XRP Are Down Today? On-Chain Data Reveals the Truth
The cryptocurrency market faced a turbulent weekend as bearish sentiment continued to dominate the space. After failing to regain a bullish outlook on Friday in Western financial markets, the total crypto market cap dropped nearly 5 percent to approximately $2.813 trillion.
Bitcoin (BTC) price saw a 3 percent decline in the past 24 hours, trading around $83,719 during the early London session on Saturday. Ethereum (ETH) also experienced a drop of over 2.3 percent, hovering around $1,878 at the time of writing. XRP price shed over 5 percent in the last 24 hours, trading at approximately $2.14.
The wider altcoin market followed Bitcoin in correction due to a significant decline in demand for crypto assets. On-chain data analysis revealed that Bitcoin demand is in contraction mode, surpassing levels seen in December 2023. Cash inflow to altcoins, particularly Ethereum and XRP, has decreased, with U.S. spot Ether ETFs facing the largest cash outflow since August 2024, amounting to over $400 million. Whale investors have shown increased activity, potentially moving capital to gold and stablecoin markets for protection.
As the 2025 cryptocurrency bull market reaches a pivotal moment, a V-shaped recovery or further correction in the coming months remains uncertain. With the upcoming U.S. tariff implementation on April 2, overall demand for crypto assets may remain low, leading to continued bearish sentiment.
Market analyst Peter Brandt noted that Bitcoin price has confirmed a falling trend after closing below a bearish flag. Brandt also suggested that XRP price could potentially drop to $1.07 if buyers fail to support the $3 level.
In conclusion, the cryptocurrency market is facing challenges with reduced investor demand, ETF outflows, whale sell-offs, and concerns over upcoming U.S. tariffs. Despite the current downturn, bullish sentiment could prevail if key support levels are maintained. Stay updated with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more to navigate the volatile crypto landscape effectively.
