The crypto market registered a substantial drop on Wednesday before recovering towards the end of the day after Federal Reserve Chair Jerome Powell flagged concerns about inflation and slowing growth due to tariffs. However, markets recovered as crypto remained strong in the face of adversity even though traditional stock markets took a beating.
Bitcoin (BTC) slumped to a low of $83,246 early on before rebounding to reach a day high of $85,290. However, the flagship cryptocurrency lost momentum after reaching this level and registered a marginal decline to its current level. BTC has been up over 1% in the past 24 hours and is trading at around $84,450. Meanwhile, Ethereum (ETH) slumped to a low of $1,546 before rebounding to reclaim $1,600 and move to its current level of $1,601. Ripple (XRP) maintained its position above $2 despite facing considerable selling pressure and is currently trading at $2.09.
Solana (SOL) saw a sharp dip on Wednesday as it fell to $123 before rebounding to reclaim $130 and move to $133 before registering a marginal decline and moving to its current level of $133. Dogecoin (DOGE) also registered a substantial drop on Wednesday, dropping to $0.151 before rebounding to its current level. The popular meme coin is up almost 1% over the past 24 hours, trading at $0.156. Cardano (ADA), Chainlink (LINK), Toncoin (TON), Stellar (XLM), Hedera (HBAR), and Polkadot (DOT) also registered notable increases. However, Litecoin (LTC) has defied market trends and has been down almost 1% over the past 24 hours.
Jerome Powell Flags Tariff Concerns
US stocks fell on Wednesday after Nvidia flagged $5.5 billion in tariff-related charges, and Federal Reserve Chair Jerome Powell warned about the economic risks due to President Trump’s economic policies. As a result of the chaos, the S&P 500 dropped over 2% while the Dow Jones Industrial Average fell 1.7%. Meanwhile, the Nasdaq Composite dropped by around 3%, inching closer to bear market territory. Nvidia shares plunged almost 10% after the company revealed it would take a $5.5 billion charge due to export curbs imposed by the US government. The US has banned the company from exporting its H20 graphics processors to the Chinese market.
However, despite the massive selloffs, Bitcoin and other cryptocurrencies held firm. BTC held above $84,000, displaying significant resistance despite growing market pressure.
Powell also flagged inflation concerns, stating that the Federal Reserve would wait for more clarity before adjusting interest rates, and warned that tariffs could lead to slower inflation and higher growth. Powell believes the Fed could face a challenging scenario if its aim of stable prices and full employment come into conflict.
Altcoin Market Drop Signals Potential Bear Market
A Coinbase report has suggested that the 41% drop in the crypto market capitalization (excluding BTC) from its December peak could signal a new bear market. The market capitalization is 17% lower than in the same period last year and is even lower than between August 2021 and April 2022, when markets witnessed a similar decline. Additionally, venture capital funding during the same period is also down 50% to 60% from the levels observed at the peak of the 2021-2022 cycle. The report argues that the reduced funding impacts the amount of capital that makes its way to the crypto market. The report states that venture capital funding is down because key decision-makers are finding it difficult to gauge the global economy’s direction.
“All of these structural pressures stem from the uncertainty of the broader macro environment, where traditional risk assets have faced sustained headwinds from fiscal tightening and tariff policies, contributing to the paralysis in investment decision-making. With equities struggling, the path to recovery for crypto remains challenging even with the idiosyncratic tailwinds from the regulatory environment.”
The report predicts a difficult cyclical outlook based on how these factors interact with and impact each other, justifying the cautionary approach adopted by investors.
“Thus, we think this warrants taking a defensive stance on risk for the time being, though we still believe that crypto prices may be able to find their floor in mid-to-late 2Q25 – setting up a better 3Q25. For now, the challenges of the current macro environment require greater caution.”
Panama City To Accept Crypto For Public Services
Panama City Mayor Mayer Mizrachi has announced that the Panama District municipality will become the first in the country to accept crypto as a form of payment. The decision comes after a unanimous approval by the City Council. Panama City’s new payment system will operate through an authorized bank that will handle the conversion of crypto payments into US Dollars for the Mayor’s office. This will help streamline the process and mitigate potential volatility associated with digital assets.
“My dear City Council has unanimously approved an initiative initiated by the Mayor’s Office, which will allow all citizens to pay their obligations and taxes in crypto.”
The Mayor added that Panama, often called Central America’s financial hub, was lagging in crypto adoption and clarified the legal framework, stating,
“Legally, it’s simple: the Mayor’s Office receives dollars, but there’s an intermediary who receives the crypto, transforms it into dollars, and takes it to the Mayor’s Office.”
Mizrachi also stated that a formal announcement and further details will be made once agreements with the partnering bank are finalized.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) held firm above $84,000 despite stock markets registering a decline after Federal Chair Jerome Powell flagged inflation and growth risks. The flagship cryptocurrency’s rally to $90,000 has also stalled, with buyers running into resistance around the $86,000 mark. BTC seems to have entered into a consolidation phase, trading between $80,000 and $86,000 since the weekend. The elusive breakout has increased the risk of a bearish realignment in key momentum indicators, with the 20, 50, and 200-day SMAs stacked one below the other and trending south. BTC must break past $85,000 and close above $86,000 to continue its recent recovery rally. However, traders are optimistic BTC can cross $85,000 and reclaim $90,000. According to crypto analytics platform Santiment, Bitcoin-related social media chatter has turned bullish. The platform stated in an April 16 post,
“Traders are showing optimism that BTC can regain $90K, which will likely be dependent on tariff and global economy news as the week progresses.”
Santiment’s social media tracker moved into bullish territory on April 16, reaching a score of 1.973. The tracker measures the tone of crypto and Bitcoin-related social media chatter. Before this, the tracker was stuck in the neutral zone with a score of 1.973, with users unsure of BTC’s price trajectory. BTC surged to an intraday above $86,000 before declining the following day. However, if BTC reclaims $85,00, $254 million in short positions would be at risk of liquidation.
However, some analysts believe BTC’s upward momentum is running out of steam, pointing to the flagship cryptocurrency’s retreat after tapping $86,000. The pullback comes after BTC registered an increase of 10% over the past seven days, helping it recover from recent declines. However, CryptoQuant analyst abramchart believes futures sentiment is not being mirrored in BTC’s recent price action, indicating that derivatives traders are cautious.
BTC registered a sharp decline last weekend, dropping over 6% to slip below $80,000 and settle at $78,301. The flagship cryptocurrency encountered volatility and selling pressure on Monday, falling to a low of $74,393 before going past $80,000 and then declining to settle at $79,165, ultimately registering an increase of 1.10%. However, the price was back in the red on Tuesday, falling almost 4% to $76,279. Markets rallied on Wednesday and BTC surged over 8% to reclaim $80,000 and settle at $82,600. BTC’s rally lost momentum on Thursday with the price dropping 3.64%, slipping below $80,000 and settling at $79,592. Sentiment changed on Friday as buyers returned to the market. As a result, BTC rose almost 5% to reclaim $80,000, move past the 20-day SMA and settle at $83,370.
Source: TradingView
Buyers retained control on Saturday as BTC rose 2.41% to cross the 50-day SMA and settle at $85,378. However, it lost momentum on Sunday, dropping almost 2% to go below the 50-day SMA and $85,000 and settle at $83,776. BTC started the current week positively, rising just over 1% and settling at $84,619 after reaching a high of $85,861. BTC lost momentum on Tuesday as the price fell to $83,701 before registering a marginal increase on Wednesday and settling at $84,031. The current session sees BTC up almost 1% as it looks to reclaim $85,000 and push towards $90,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) dipped below $1,600 again after registering declines on Tuesday and Wednesday. However, while the chart suggests ETH could be struggling, on-chain metrics indicate it could be entering a key accumulation phase. According to a CryptoQuant analyst, ETH is nearing its realized price level, a zone that precedes significant rebounds. The realized price currently sits at around $1,585 and acted as a reliable signal of deep value accumulation. Every bull run in ETH’s history started when the price fell to or below this level. The analyst noted that the price is approaching the lower band of the realized price model, suggesting the market was cooling and preparing for the re-entry of long-term holders.
However, technical indicators paint a mixed picture, as ETH slipped below the 20-day SMA and remains well below the 200-day SMA, indicating a strong downtrend. Meanwhile, the RSI is around 40, indicating weak momentum. ETH’s Bollinger Bands also remain compressed, indicating low volatility.
ETH faced selling pressure and volatility at the beginning of the previous week, falling to an intraday low of $1,412. However, it rebounded from this level to reclaim $1,500 and settle at $1,552, ultimately registering a decline of almost 2%. Sellers retained control on Tuesday as the price fell over 5%, slipping below $1,500 and settling at $1,472. Bullish sentiment returned on Wednesday as markets rallied. As a result, ETH surged over 13%, going past $1,600 and settling at $1,668. However, ETH’s rally lost momentum on Thursday as the price fell almost 9%, slipping below $1,600 and settling at $1,521. Sentiment changed on Friday as ETH recovered, rising nearly 3% to $1,566.
Source: TradingView
Buyers retained control on Saturday as the price registered an increase of almost 5% to reclaim $1,600 and settle at $1,644. ETH lost momentum on Sunday, dropping nearly 3% to settle at $1,596. The current week started positively as the price rose 1.66% to reclaim $1,600 and settle at $1,622. However, ETH was back in the red on Tuesday, dropping 2.02% to $1,589. The price declined on Wednesday, falling 0.78% to $1,577. The current session sees ETH up over 1% as it looks to reclaim $1,600.
Solana (SOL) Price Analysis
Solana (SOL) registered a steep decline at the end of the previous weekend as it fell to $105. Selling pressure persisted on Monday as the price plunged below $100, falling to an intraday low of $95. It rebounded from this level to reclaim $100 and settle at $106. SOL was back in the red on Tuesday, registering a drop of 1.56% and settling at $105. Bullish sentiment intensified on Wednesday as markets rallied. As a result, SOL rose almost 13% and settled at $118. However, the rally lost momentum on Thursday as the price dropped over 5% and settled at $112. Sentiment changed on Friday as buyers returned to the market, and SOL registered an increase of almost 8% to reclaim $120 and settle at $121.
Source: TradingView
Bullish sentiment persisted on Saturday as SOL rallied 9% to move past the 20-day SMA and $130 and settle at $132. Despite strong bullish sentiment, SOL lost momentum on Sunday after failing to cross the 50-day SMA. As a result, the price dropped 3%, slipping below $130 and settling at $128. SOL registered a marginal increase on Monday but was back in the red on Tuesday, falling 2.47% to $126. The price recovered on Wednesday, rising over 4% to reclaim $130, move past the 50-day SMA and settle at $131. The current session sees SOL up over 1% and trading at $133 as it looks to break past the resistance at $135 and move towards $140.
Litecoin (LTC) Price Analysis
Litecoin (LTC) has traded in the red since the weekend, losing momentum after failing to cross the 20-day SMA and move past $180. LTC registered a sharp decline last Monday before recovering to register a marginal increase and settle at $71. However, the price fell back in the red on Tuesday dropping almost 3% to $69. LTC recovered on Wednesday as markets rallied, rising nearly 10% to reclaim $70 and settle at $76. The rally lost momentum on Thursday as the price dropped over 3% to $73. The price recovered on Friday as market sentiment changed, rising 3.45% to $76. The price continued to push higher on Saturday, registering an increase of 3.07% and settling at $78.
Source: TradingView
LTC encountered resistance at this level, with sellers active at around $80. As a result, the price dropped over 1% on Sunday and continued to decline on Monday to settle at $77. Bearish sentiment intensified on Tuesday as LTC fell 2.46% and settled at $75. Sellers retained control on Wednesday as the price dropped 1.24% to $74. LTC has recovered during the ongoing session, with the price marginally up as buyers look to build momentum and push towards $80.
Aptos (APT) Price Analysis
Aptos (APT) has traded in the red since the weekend, losing momentum after it failed to move past the 20-day SMA. The price plunged to a low of $3.89 last Monday before rebounding to reclaim $4 and settle at $4.41. However, it lost momentum on Tuesday after reaching an intraday high of $4.71, dropping almost 2% to $4.33. APT made a strong recovery on Wednesday, surging over 9% to $4.72. Despite the momentum, APT was back in the red on Thursday, falling over 2% to $4.62. Market sentiment changed on Friday as buyers returned to the market. As a result, APT registered an increase of 3.49% and settled at $4.78. Buyers retained control on Saturday as the price moved to $4.95.
Source: TradingView
APT surged to an intraday high of $5.20 on Sunday but lost momentum after reaching this level. As a result, the price dropped almost 3% to $4.82. Sellers retained control on Monday as APT registered a marginal decline. Selling pressure intensified on Tuesday as APT plunged nearly 4% to $4.61 before registering a marginal increase on Wednesday. APT is up almost 1% during the current session, trading around $4.65 as it looks to build momentum for a renewed push toward $5.
Uniswap (UNI) Price Analysis
Uniswap (UNI) is trading in a narrow range as it struggles to cross the 20-day SMA. UNI registered a substantial increase on Wednesday, rising over 13% to cross $5 and settle at $5.40. However, the rally lost momentum on Thursday, dropping over 7% and settling at $5.02. Market sentiment changed on Friday as UNI recovered, rising over 4% and settling at $5.23. Buyers retained control on Saturday as the price registered an increase of 5.15% and settled at $5.50. UNI lost momentum on Sunday, dropping over 3% to end the week in the red at $5.33.
Source: TradingView
The current week started positively as UNI raced to an intraday high of $5.64. However, it lost momentum after reaching this level and dropped to $5.34, ultimately registering a marginal increase. Bearish sentiment returned Tuesday as the price fell over 3% to $5.17. Sellers retained control on Wednesday as UNI registered a marginal decline and settled at $5.15. The current session sees UNI up 1.15% as buyers look to build momentum for a renewed push towards the 20-day SMA.
Cosmos (ATOM) Price Analysis
Cosmos (ATOM) has been trading downwards since losing momentum on Thursday after failing to cross the 20 and 50-day SMAs. ATOM registered a significant jump on Wednesday, rising over 8% to cross the 50-day SMA and settle at $4.52. However, the rally lost momentum on Thursday as ATOM fell over 4%, slipping below $4.50 and the 50-day SMA and settling at $4.33. Sellers retained control on Friday as the price dropped almost 2% to $4.24. ATOM recovered on Saturday, rising 2.55%, but was back in the red on Sunday, registering a drop of nearly 5% to settle at $4.14.
Source: TradingView
ATOM started the week on a bearish note, registering a marginal decline and settling at $4.12. Bearish sentiment intensified on Tuesday as the price fell 3.43% and settled at $3.98. However, the price recovered on Wednesday, rising almost 1% to reclaim $4 and settle at $4.01. The current session sees ATOM up nearly 2% and trading at $4.09.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.