Crypto Markets in ‘Wait-and-See’ Mode Amid Economic Uncertainty
Crypto Market – As of Tuesday morning, six of the top eight cryptocurrencies by market capitalization have experienced modest gains. Dogecoin and Cardano (ADA) led the pack, both rising by 5.2% and 5.9%, respectively. Other major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), BNB, and Solana (SOL), have all shown positive movements, with Bitcoin gaining 2.5%, Ethereum increasing by 3.7%, and BNB and Solana up 2.5% and 3.3% respectively, according to data from CoinGecko.
Bearish Bitcoin Options and Market Sentiment
Despite the overall positive movement, market participants observed $1 million in bearish Bitcoin options on Monday evening, with 1,180 contracts for $70K put options set to expire by April 25. This indicates some concerns regarding potential downside pressure on Bitcoin in the near term.
Meanwhile, Ethereum has shown renewed momentum as it outpaced Solana for decentralized exchange (DEX) volumes. Ethereum recorded $63.02 billion in DEX volumes, compared to Solana’s $51.25 billion. Although Solana is catching up with a 32% increase in weekly volume, compared to Ethereum’s 14% rise, Solana’s meme coin volume has dropped significantly—from $390 million in January to just below $100 million.
Renewed Optimism Amid Market Rebound
The modest gains in major cryptocurrencies have been attributed to “renewed optimism for the new quarter,” according to Dominick John, an analyst at Kronos Research. This rebound is seen as a result of the market absorbing the concerns surrounding Trump’s tariff announcements. Data from MYRIAD, a decentralized prediction market, reflects this sentiment, with users lowering their expectations of Crypto Fear and Greed Index scores below 32, moving from a weekend high of 37% to around 17% on Tuesday morning.
The broad-based rally is seen as a continuation of overall bullish momentum, following a difficult first quarter in which Bitcoin, Ethereum, and tech stocks indexed in the S&P 500 suffered their worst quarterly performance in three years. However, macroeconomic factors, including President Trump’s tariff announcements and upcoming jobless claims data, may trigger further volatility.
Future Outlook: Risks and Opportunities
Market analysts are closely monitoring for any “fresh tariff developments or macroeconomic shocks” that could further impact the market. If these don’t materialize, the current trend of modest gains could persist, with crypto markets continuing to show resilience. However, the possibility of broader risks remains, especially with concerns about recession and market volatility.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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