Bitcoin and Ethereum received a hard blow on the last trading day of the week. The decline under the leadership of Bitcoin influenced the general market, while the total market value melted only 115 billion dollars a day. In particular, Ethereum’s weak performance against Bitcoin attracted attention, while ETH/BTC parity fell to the lowest level of the last four years.
Bitcoin could not resist, Ethereum remained weak
Rising to $ 88,000 during the week, Bitcoin withdrew to $ 83,800 on Friday with a 3.8 %decrease. However, the real remarkable movement came from the Ethereum front. While ETH fell more than 6 %against the dollar, the value against Bitcoin has declined for the first time since May 2020.
While the investor interest in Bitcoin has been able to remain alive thanks to ETFs recently, things do not progress at the same speed on the Ethereum front. Since the beginning of March, there has not been a significant fund entry to ETH ETFs. This weakens Ethereum’s position in the market and causes the price to be under pressure.
Global markets are also under pressure
The decline on the crypto side is not limited to digital assets. The weak economic data announced in the USA also pulled the stock markets down. The S&P 500 index decreased by 2 %and NASDAQ decreased by 2.7 %, while harsh losses occurred in crypto -associated shares. Microstrategy depreciated 10.8 %and Coinbase was 7.77 %.
Inflation data announced in the US showed that annual inflation was 2.5 %and core inflation was 2.8 %. These rates remained above market expectation. In addition, the weak consumer expenditures increased growth concerns. According to the Fed’s GDPNOW estimation model, the US economy may shrink 2.8 %in the first quarter of the year. Moreover, new customs tariffs, which are expected to come into play on April 2, are another element that increases the uneasiness in the markets.
Is it an expected withdrawal of Bitcoin?
According to some experts, it is not a surprise that Bitcoin’s withdrawal is withdrawn. The closure of price gaps in the futures markets, especially, showed that this was technically possible. When the chain data is examined, Bitcoin gives short -term recovery signals.
Nevertheless, analyst Michaël Van de Poppe says that support under $ 84,000 are weakened and sales pressure may increase. Bitcoin’s view that he may face strong support if he declined to $ 75,000. On the other hand, LMAX Group strategist Joel Kruger says that corporate interest in the crypto industry continues and that it is strongly likely to recover in the later stages of the year.
