Bitcoin experienced a 4.5% decline, dropping to $63,044 during Tuesday’s trading session. This decrease was influenced by the stronger-than-expected US retail sales data for March, which indicated a robust economic performance and reduced the likelihood of immediate interest rate cuts by the US Federal Reserve.
The Commerce Department’s Census Bureau reported a 0.7% increase in retail sales for the previous month, with February’s data also revised upwards to show a significant rebound of 0.9%. This positive trend in retail sales contributed to the market sentiment.
Simultaneously, the cryptocurrency market faced a notable downturn, partly due to escalating tensions between Iran and Israel.
In the crypto market, Ethereum, the second-largest digital asset, also saw a 5% decline, reaching $3,070 by 11:56 am IST. Other major cryptocurrencies such as BNB (-4.2%), Solana (-12.5%), XRP (-3.7%), Toncoin (-11.5%), Dogecoin (-5.7%), Shiba Inu (-7.4%), and Avalanche (-7.7%) also experienced declines.
Vikram Subburaj, the CEO of Giottus Crypto Platform, highlighted the struggle of Bitcoin to maintain the crucial $63,000 level amidst bearish market sentiments, particularly in the US. He mentioned the volatility expected around Bitcoin’s upcoming halving and its susceptibility to macroeconomic conditions.
The CoinDCX Research Team noted a consolidation phase with a slight decline in both BTC and ETH over the last 24 hours. They emphasized the uncertainty surrounding Bitcoin’s price direction, influenced by ongoing geopolitical tensions and the imminent halving event.
Despite the recent market fluctuations, experts remain optimistic about the long-term prospects of Bitcoin and Ethereum. The global cryptocurrency market cap declined by 4.1% to approximately \(2.29 trillion, with Bitcoin’s market cap falling to \)1.239 trillion and its dominance at 54.11%.
Looking ahead, technical analysis suggests that Bitcoin’s key support level is at \(60,775, with resistance at \)66,900. Meanwhile, Ethereum’s immediate challenge is to surpass the \(3,200 mark to initiate an upward movement towards \)3,600.
(Note: The opinions and insights shared by experts are their own and do not necessarily reflect the views of The Economic Times.)