Cryptocurrency prices have experienced a strong decrease in the last hours, with Bitcoin (BTC) that now decreases around 3% in the last 24 hours, while the main alternatives, including XRP, BNB and Sun, have dropped between 4% and 5% during the same period.
The broader cryptocurrency market, represented by the COINDESK 20 index (CD20), lost around 3.3% of its value during the period. The acute fall reduces the performance of BTC by 1.7% during the week, while CD20 has dropped almost 5%.
In the last 24 hours, more than $ 300 million were settled in long positions in centralized cryptocurrency exchanges, while $ 38.8 million in shorts on these platforms were settled, according to coinglase data.
The fall seems to be part of a broader rupture movement among merchants, since investors anticipate the impact of the reciprocal rates of President Donald Trump that will enter into force on April 2. The movement increased after the Personal Consumer Expenses (PCE) data (PCE) arrived hotter than expected on Friday.
Just this week, consumer confidence data fell more than expected, while the index for future expectations reached a minimum of 12 years, and well below the levels associated with an incoming recession.
This confluence of factors has seen investors reduce their exposure to risk assets and caused a flight to security. The last Stablcoin Data report shows that cryptocurrencies backed by Gold have benefited from the risk movement, since their market capitalization rose above $ 1.4 billion in March.
The cryptocurrencies backed by gold are, in fact, counteracting the bearish trend of the market. While the CD20 has dropped more than 3% in the last 24 -hour period, tokens that include PAXG and XAUT rose 0.7% to more than $ 3,100. These tokens have risen more than 18% in the year on the date, while BTC has dropped 12.5% and the CD20 28% index so far this year.
