What Happened: Bitcoin dipped below $82,000 in the early trading hours but recovered to $83,000 by evening. Ethereum followed a similar U-shaped trajectory, falling to a low of $1,750 before regaining $1,800 later in the day.
Bitcoin continued to witness capital rotation away from altcoins, with its market dominance rising to 62%. In fact, CoinMarketCap’s Altsoin Season Index flashed a “Bitsoin Season” as of this writing.
Nearly $247 million was liquidated from the market in the last 24 hours, with more than $170 million in upside bets wiped out.
Bitcoin’s Open Interest mirrored spot price moves, marginally gaining 0.63% in the last 24 hours.
The Long/Short Ratio fell sharply, suggesting an increase in traders betting against Bitcoin’s price increase.
The market sentiment improved from “Extreme Fear” to “Fear,” according to the Crypto Fear …
Between Oct. 25, 2024, and Jan. 16, 2025, XRP (XRP) had one of the best rallies of the current bull market, gaining 600% as investors piled in with the hope that a pro-crypto presidency would benefit Ripple and its cryptocurrency.
During this time, the quarterly average of daily active addresses jumped by 490% and XRP price hit a 7-year high.
Fast forward to the present, and data shows that the speculative interest surrounding XRP is declining. Holders are increasingly facing losses rather than gains, which is dampening their risk appetite.
“Retail confidence in XRP may be slipping”
Since bottoming in 2022, Bitcoin (BTC) and XRP have gained 500% to 600%, but the bulk of XRP’s gains came from a parabolic price increase. Data from Glassnode shows that XRP daily active addresses jumped by 490%, whereas the same metric for Bitcoin increased by 10% over the past four months.
XRP’s new investor realized the cap. Source: Glassnode
This retail-driven surge pushed XRP’s realized cap from $30.1 billion to $64.2 billion, with $30 billion of that inflow coming from investors in the last six months. The share of XRP’s realized cap held by new investors (less than six months) jumped from 23% to 62.8%, signaling a rapid wealth shift. However, since late February 2025, capital inflows have dipped significantly.
XRP realized profit/loss ratio. Source: Glassnode
The primary reason is that investors are currently locking in fewer profits and staring at higher losses. This can be identified by the realized loss/profit ratio, which has constantly declined since 2025. Glassnode analysts said,
“Given the retail-dominated inflows and largely concentrated wealth in relatively new hands, this alludes to a condition where retail investor confidence in XRP may be slipping, and this may also be extended across the broader market.”
Besides weakening confidence among newer investors, the distribution of XRP among whale addresses reflects a similar trend. Data shows a steady increase in whale outflows since the start of 2025, suggesting that large holders have been consistently trimming their positions. Over the past 14 days, over $1 billion in positions were offloaded at an average price of $2.10.
XRP has found support at $2 multiple times over the past few weeks, but the chance of the altcoin dropping below this level increases with each retest.
However, on the lower time frame (LTF) of the 1-hour and 4-hour charts, a bullish divergence can be observed for XRP. A bullish divergence occurs when the price forms a lower low and the relative strength index (RSI) forms a lower high.
With a fair value gap between $2.08 and $2.13, XRP might see a relief rally into this range, especially if the wider crypto market undergoes an oversold bounce. On the higher time frame chart, XRP appears bearish due to the formation of an inverse head-and-shoulders pattern, with a measured target near $1.07.
There is a chance that the altcoin finds support from the 200-day moving average (orange line) around the $1.70 to $1.80 mark, but XRP price has not tested this level since Nov. 5, 2024.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Economic uncertainty and a major crypto exchange hack pushed down the total value locked in decentralized finance (DeFi) protocols to $156 billion in the first quarter of 2025, but AI and social apps gained ground with a rise in network users, according to a crypto analytics firm.
“Broader economic uncertainty and lingering aftershocks from the Bybit exploit” were the main contributing factors to the DeFi sector’s 27% quarter-on-quarter fall in TVL, according to an April 3 report from DappRadar, which noted that Ether (ETH) fell 45% to $1,820 over the same period.
Change in DeFi total value locked between Jan. 2024 and March 2025. Source: DappRadar
The largest blockchain by TVL, Ethereum, fell 37% to $96 billion, while Sui was the hardest hit of the top 10 blockchains by TVL, falling 44% to $2 billion.
Meanwhile, blockchains that experienced a larger volume of DeFi withdrawals and had a smaller share of stablecoins locked in their protocols faced extra pressure on top of the falling token prices.
The newly launched Berachain was the only top-10 blockchain by TVL to rise, accumulating $5.17 billion between Feb. 6 and March 31, DappRadar noted.
Market fall didn’t stunt AI and social app user growth
However, the number of daily unique active wallets (DUAW) interacting with AI protocols and social apps increased 29% and 10%, respectively, in Q1, while non-fungible token and GameFi protocols regressed, DappRadar’s data shows.
The monthly average of DUAWs interacting on the AI and social protocols rose to 2.6 million and 2.8 million, while DeFi and GameFi protocols fell double-digits.
DappRadar said there was “explosive growth” in AI agent protocols, stating that they’re “no longer a concept.”
“They’re here, and they’re shaping new user behaviors,” said the firm.
Change in DeFi total value locked between Jan. 2024 and March 2025. Source: DappRadar
Meanwhile, NFT trading volume fell 25% to $1.5 billion, with OKX’s NFT marketplace taking in the most sales at $606 million, while OpenSea and Blur saw $599 million and $565 million, respectively.
Pudgy Penguins NFTs were the most sold collectibles at $177 million, while CryptoPunks NFTs netted $63.6 million from just 477 sales, DappRadar noted.
“When analyzing top collections, CryptoPunks remains a staple — its prestige remains intact even as price fluctuations make it largely inaccessible for the average user.”
EigenLayer plans to start “slashing” restakers on April 17, resulting in the Ethereum restaking protocol’s “first feature-complete iteration,” it said in an April 2 announcement.
Implementing slashing will mark EigenLayer’s final step toward establishing the protocol as “infrastructure for a new generation of verifiable apps and services built on the Verifiable Cloud,” it said in a post on the X platform.
In 2024, EigenLayer started distributing rewards — including emissions of its native EIGEN token — to incentivize restakers. However, slashing has so far been limited to EigenLayer’s testnets.
Once slashing is live, node operators and restakers will be able to voluntarily “opt-in,” resulting in a gradual transition for users, EigenLayer said in a blog post.
Slashing starts on EigenLayer’s mainnet soon. Source: EigenLayer
Launched in 2023, EigenLayer secures third-party protocols — dubbed actively validated services (AVSs) — against a pool of “restaked” cryptocurrencies used as collateral.
Restaking involves taking a token that has already been staked — posted as collateral with a validator in exchange for rewards — and using it to secure other protocols simultaneously.
Slashing is the primary method for securing proof-of-stake protocols — including Ethereum as well as “restaking” protocols such as EigenLayer — and involves penalizing a network’s node operators for poor performance or misbehavior.
“If Operators do not meet the conditions set, the AVS may penalize them. But, if the Operator runs the service successfully, AVSs can reward the Operator’s performance and incentivize specific activity,” EigenLayer said in an April 3 blog post.
This “allows for a free marketplace where Operators can earn rewards for their work and AVSs can launch verifiable services,” the post said.
EigenLayer’s total value locked (TVL) over time. Source: DeFILlama
Growing ecosystem
Upward of 30 AVSs are already live on EigenLayer’s mainnet, and dozens more are being developed.
They include EigenDA — run by EigenLayer developer Eigen Labs — and ARPA Network, a protocol specializing in trustless randomization.
In October, EigenLayer unlocked its native token, EIGEN. It is designed as a more flexible option for securing consensus-based protocols than other proof-of-stake tokens, such as Ether, according to EigenLayer.
EigenLayer is prioritizing onboarding crypto-native apps in segments such as decentralized finance (DeFi) and gaming before expanding beyond Web3, founder Sreeram Kannan told Cointelegraph in October.
“We’re starting with the inside-out approach, focusing on high-throughput consumer apps like DeFi and gaming, but once we grow a little bigger and have critical mass, we’ll go outside and start targeting broader consumer markets,” Kannan said.
The cryptocurrency exchange Gemini, backed by Cameron and Tyler Winklevoss, plans to move into a Miami-area office space, as US Securities and Exchange Commission (SEC) enforcement case may have reached its end.
According to a March 31 post from Sterling Bay Properties, Gemini signed a lease for an office in Miami’s Wynwood Art District. The move would expand the exchange’s offices from Europe and New York to Florida, where some crypto companies are headquartered.
Bloomberg reported Gemini was expected to move into the Miami office by May. Cointelegraph reached out to the exchange for comment but did not receive a response at the time of publication.
Wrapping up regulatory issues?
The move to Florida came amid a federal judge ordering a 60-day stay on the SEC’s lawsuit against Gemini Global Capital “to allow the parties to explore a potential resolution.” The enforcement action, filed in January 2023, alleges the crypto firm offered and sold unregistered securities through its Gemini Earn program.
Cameron Winklevoss said in February that the regulator had closed an investigation into a separate matter involving Gemini. The firm also agreed in January to a $5 million penalty imposed by the US Commodity Futures Trading Commission over alleged “false and misleading” statements related to its 2017 bid to offer Bitcoin (BTC) futures contracts.
Gemini reportedly filed confidentially for an initial public offering (IPO) earlier this year. The exchange may have pursued an IPO as early as 2021 before shares of many US-based crypto firms were publicly traded.
Several crypto firms have regional offices in Miami, possibly due to Florida’s seemingly favorable regulatory environment and the lack of state income tax for residents. Ripple Labs has an office in the Wynwood neighborhood, not far from Gemini’s future location, and BTC miner MARA Holdings is headquartered in Fort Lauderdale.
XRP (XRP) stabilized near its $2 support after today’s marketwide sell-off sent the altcoin and several other cryptocurrencies close to their swing lows.
Data now shows the XRP/USD pair exhibiting early signs of a bullish breakout.
Ripple’s RLUSD integration could boost XRP price
Ripple’s integration of its RLUSD stablecoin into its cross-border payments system, Ripple Payments, could significantly boost XRP’s price by enhancing its utility and liquidity.
On April 2, Ripple, the company behind XRP, announced that it had integrated its stablecoin into the company’s cross-border payments system to boost adoption for Ripple USD (RLUSD).
RLUSD, a USD-pegged stablecoin launched in December 2024, complements XRP by providing stability for transactions, while XRP serves as a fast, liquid bridge currency. This dual-asset strategy targets the $230 billion cross-border payments market, and ims to increase demand for both assets.
Source: X / Ripple
RLUSD’s market cap now stands at $244 million, with 87% growth in March alone, according to data from rwa.xyz. As adoption grows, financial institutions using Ripple Payments may rely more on XRP for liquidity, especially in volatile corridors.
Pairing RLUSD with XRP on the XRP Ledger (XRPL) and exchanges could drive trading volume and activity on XRPL’s decentralized exchange, tightening XRP’s supply.
Positive sentiment from RLUSD’s success could also lift XRP’s value, with analysts suggesting increased adoption might push XRP toward $3.50 or higher.
“Ripple’s $RLUSD integration is a pivotal move for cross-border payments,” said crypto market insights provider Alva in an April 3 post on X.
As a result, “optimism around $RLUSD soaring, with eyes on its ripple effect on XRP,” Alva said, adding:
“Overall: A solid play for strengthening Ripple’s ecosystem and pushing stablecoin adoption forward. Get ready for potential shifts!”
XRP’s price action between Jan. 16 and April 3 has led to the formation of a symmetrical triangle pattern on the daily chart. The price is retesting the lower trendline of the triangle at $1.98, suggesting that a rebound could be in the making.
Note that the price has successfully rebounded from this trendline two to three times in the past, with each retest leading to a significant price recovery.
If a similar scenario plays out, XRP could recover from current levels and with good volumes, it may break above the triangle’s descending trendline at $2.40 (embraced by the 50-day SMA).
The target is set by the distance between the triangle’s lowest and highest points, which would bring XRP price to $3.51, an approximate 73% gain from the current price.
Several analysts also share similar bullish outlooks for the altcoin, citing XRP’s adoption, chart technicals and the end of Ripple’s long-standing case with the SEC as the reasons.
Citing a chart similar to the one shared above, XRP investor Steph Is Crypto said the price was “heavily compressing” before a massive breakout.
“This breakout will create many new millionaires!”
Using Elliott Wave theory, crypto analyst Dark Defender shared an optimistic price prediction for XRP, saying that the token’s correction in the monthly timeframe “will be over within weeks.”
According to CasiTrades, the XRP’s relative strength index shows a bullish divergence on multiple timeframes and this signals a price bottom, and an upside target of $3.80.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
IntoTheBlock data shows large transaction volume increasing by 7.5% and daily active addresses falling by 6%. Transactions greater than $100,000 are down from 10,387 to 10,152 in a single day. Exchanges netflows are up by 19.4%.
Coinglass data reports 194,417 traders were liquidated in the past 24 hours for $527.37 million.
Not all tokens can be sold immediately. Airdropped or obscure tokens may lack liquidity or could be scams, so it’s important to check before attempting to cash out.
Swapping and bridging may be required. To sell, you might need to convert tokens to ETH or stablecoins and bridge them to the Ethereum mainnet.
MetaMask integrates fiat off-ramps. You can use the MetaMask Portfolio to sell ETH directly, but be prepared for KYC with third-party providers.
Non-KYC and P2P options exist. Platforms like Bisq or LocalCoinSwap allow trading without ID, but they carry more risk and require caution.
There are plenty of ways you might end up with a mix of different cryptocurrencies sitting in your MetaMask wallet.
Maybe you work in Web3 — as a developer, copywriter or designer — and your client paid you in their project’s native token.
Or maybe you’re part of a Bitcoin mining pool and occasionally receive rewards straight to your wallet.
Whatever the case, you’ve got crypto in your MetaMask — and now you want to turn it into cash.
In this guide, you’ll learn all the ways you can sell your crypto and withdraw the funds to your bank account or even in cash — whether you’re going through official Know Your Customer (KYC) channels or sticking to more private, non-KYC routes.
Things to know before selling tokens on MetaMask
Before you can turn your tokens into cash, there are a few things you need to get sorted in MetaMask because “not all tokens are created equal.” It’s not always as simple as hitting a “sell” button — especially if you’ve just received tokens via an airdrop or from a lesser-known project.
1. Why some airdropped tokens can’t be sold (yet)
Just because a token shows up in your wallet doesn’t mean it’s ready to be sold. In fact, many airdropped tokens aren’t listed on exchanges at all. That means there’s no market where you can sell them — not yet, anyway. You might see a price attached to the token, but without buyers or liquidity, that value isn’t something you can actually realize right now. So, while it’s great to receive free tokens, they may end up sitting idle in your wallet for a while.
Did you know? If you see a “100% sell fee detected” warning on a token, it’s likely a scam. Scammers airdrop these tokens, hoping you’ll try to sell or interact with them. But when you do, the smart contract takes the full amount — leaving you with nothing. Worse, some link to fake decentralized applications (DApps) that ask you to “claim” or “unlock” the tokens. Connecting your wallet or signing a transaction there can let scammers drain your real assets.
2. Adding missing tokens to your wallet
Sometimes, you’ll receive tokens that don’t even show up in MetaMask at first. That doesn’t mean they’re not there — it just means MetaMask doesn’t recognize them by default. You’ll need to add them manually by grabbing the token’s contract address (usually from the project’s official site or Etherscan) and importing it into your wallet. Once you do that, your balance will show up properly.
Similarly, if you want to receive any asset other than Ether (ETH), the “Import Tokens” option lets you manually add these missing tokens so they show up in the assets list.
3. Getting ready to swap or bridge
Even if your tokens are visible in MetaMask and technically have value, that doesn’t always mean you can sell them for cash right away. Many smaller or newer tokens don’t have direct fiat trading pairs — so you won’t be able to exchange them straight into dollars or euros.
To get around this, you’ll usually need to swap them for something more liquid, like ETH or a stablecoin such as USDC (USDC), which are more commonly supported by fiat off-ramps.
In some cases, your tokens might also be sitting on a different blockchain — like Arbitrum, BNB Chain or Polygon — while most fiat withdrawal options only support Ethereum mainnet. When that’s the case, you’ll need to bridge your tokens over to Ethereum before you can sell them.
One way to handle both of these steps — swapping and bridging — is by using platforms that combine them into a single flow. For example, with Symbiosis.finance, you can swap a token on one chain and receive a more widely accepted token on Ethereum, all in one transaction. This can save you a few steps and reduce the chance of user error when hopping between tools.
How to sell crypto with MetaMask
The simplest way to sell crypto that you hold on MetaMask is by using the application itself. Here’s what to do:
Open MetaMask portfolio: In your MetaMask extension or app, click the “Buy & Sell” button. This will take you to the MetaMask Portfolio site, where you can manage all your assets and begin the selling process.
Start the sale process: Click on “Move crypto” at the top of the page and select “Sell” from the dropdown options.
Choose your region and currency: MetaMask will ask for your country of residence and preferred fiat currency. This step ensures you’re shown accurate provider options and payout methods available in your area.
Enter sale amount: Select Ether and enter how much you’d like to convert.
Pick a payout option: Next, choose where you want the fiat to go. Depending on your region and provider availability, you might be able to send it to a bank account, PayPal or another method.
Compare offers: MetaMask aggregates offers from several third-party providers (like MoonPay, Transak, Sardine, etc.), showing you real-time exchange rates, fees and estimated payout times. Take a moment to compare and pick the best option for you.
Complete the sale: Once you’ve chosen a provider, MetaMask will guide you through sending the crypto. You’ll confirm the transaction in your wallet, and the funds will be transferred to the provider, who handles the fiat payout.
There are two things to keep in mind when using the MetaMask application:
Firstly, while the application itself might not ask you for KYC, the third-party providers will. So, expect to get your documents ready for this one.
Secondly, MetaMask’s sell feature only supports ETH on the Ethereum mainnet. This is where the bridging will come in as was explained earlier.
Withdrawing crypto via centralized exchanges
If you’d rather cash out your crypto through a centralized exchange, Coinbase is a popular option. It’s beginner-friendly, offers fiat withdrawals, and supports a wide range of assets. Just note: You’ll need to complete KYC verification before withdrawing any fiat.
Here’s how to do it, step by step:
1. Send crypto from MetaMask to Coinbase
First things first: You’ll need to move your funds from MetaMask to Coinbase.
Log in to your Coinbase account and hit “Send & Receive” at the top.
Switch to the “Receive” tab, pick the crypto you’re sending (like ETH or USDC), and copy the wallet address Coinbase gives you.
Make sure the network matches — for example, if you’re sending ETH, it should be on the Ethereum (ERC-20) network.
Now open MetaMask:
Click “Send,” paste in that Coinbase address, and enter how much you want to transfer.
Double-check the network — if you send it to the wrong one, your funds could disappear.
Hit “Confirm,” and your crypto should show up in Coinbase after a few minutes.
2. Sell crypto for fiat on Coinbase
Once your funds land in Coinbase, it’s time to cash out.
Head to “Buy & Sell” at the top and switch to the “Sell” tab.
Choose the crypto you just received and decide how much you want to sell.
Pick where you want the money to go — like your linked bank account, PayPal or your Coinbase balance.
Review the details (including any fees), then hit “Sell.”
Did you know? When withdrawing via centralized exchanges, be cautious of minimum withdrawal amounts and any associated fees. Check these details in advance to make sure the limits and costs are acceptable to you before committing to this route.
Peer-to-peer with KYC
With peer-to-peer (P2P), you’re not selling your crypto to the exchange. Instead, you’re selling it to another user. You choose a buyer based on their offer and preferred payment method (like bank transfer, Revolut, Wise, etc.). Once they send the money to your account, you release the crypto to them. The platform holds your crypto in escrow during the process, so no one can just disappear with your funds.
With centralized exchanges, you’ll have to complete KYC before you’re able to trade in this manner.
Selling via P2P on Binance
Go to Trade > P2P.
Choose the coin you want to sell and browse the list of available buyers.
Select a deal, confirm the order, and wait for the buyer to make the payment.
Once the payment has arrived in your account, confirm it and release the crypto from escrow.
Did you know? Some peer-to-peer (P2P) cryptocurrency exchanges offer a “cash by mail” option, allowing users to send physical cash through postal services or couriers to settle transactions.
Cashing out of your MetaMask wallet without KYC
For those looking to convert cryptocurrency from their MetaMask wallet to fiat currency without undergoing Know Your Customer (KYC) verification, there are still a few viable paths.
Decentralized P2P platforms let you trade directly with other users, much like their centralized counterparts, though often with minimal or no KYC requirements.
LocalCoinSwap: A non-custodial P2P marketplace that supports a wide range of cryptocurrencies and payment methods, including cash. It offers escrow protection and emphasizes privacy.
Bisq: A fully decentralized exchange that supports a variety of cryptocurrencies, including Bitcoin and Monero (XMR). It runs on a peer-to-peer protocol and doesn’t require user accounts or KYC.
However, without KYC, you’re responsible for vetting the person you’re trading with. Check their reputation, review any available trade history, and always follow platform safety guidelines.
Using cryptocurrency ATMs to withdraw crypto from MetaMask
Withdrawing funds from your MetaMask wallet using cryptocurrency ATMs — often referred to as Bitcoin ATMs — is an option that allows you to convert your digital assets into cash. Here’s how you can approach this method:
Locate a cryptocurrency ATM: Begin by finding a cryptocurrency ATM in your vicinity. Websites like CoinATMRadar provide directories of Bitcoin ATM locations worldwide, detailing the services they offer and the cryptocurrencies they support.
Prepare your MetaMask wallet: Ensure that the cryptocurrency you intend to withdraw is supported by the ATM. Bitcoin ATMs predominantly support Bitcoin (BTC), so you may need to use a decentralized exchange (DEX) to swap your current tokens for BTC within your MetaMask wallet. Be mindful of transaction fees and exchange rates during this process.
Initiate the withdrawal process: At the ATM, select the option to withdraw cash. The machine will prompt you to specify the amount you wish to withdraw and provide a QR code representing the ATM’s wallet address.
Transfer funds from MetaMask: Using your MetaMask wallet, scan the QR code provided by the ATM to input the recipient address accurately. Enter the exact amount of cryptocurrency required and confirm the transaction. Be aware that network congestion can affect transaction times.
Collect your cash: Once the blockchain confirms the transaction, the ATM will dispense the equivalent amount in cash, minus any applicable fees. This process can take anywhere from a few minutes to longer, depending on network conditions.
When using crypto ATMs, you should expect very high fees, and while small transactions don’t usually require KYC, larger ones still might.
Are MetaMask crypto transactions taxable?
Taxes aren’t the most exciting topic, but they matter when converting crypto from a MetaMask wallet into fiat. Selling crypto, whether through MetaMask, an exchange or a P2P deal, may trigger a taxable event, and understanding the applicable rules is essential.
Selling crypto = possibly taxable
In most countries, including the US, selling crypto for fiat (like US dollars, euros, etc.) is treated like selling property. That means if you bought ETH at $1,000 and sold it later for $1,500, you’ve made a $500 capital gain — and that’s usually taxable.
Even swapping one crypto for another (say, ETH for USDC) can trigger the same kind of tax obligation, even if no fiat is involved. So, yeah, it’s not just cashing out that counts — any trade can be reportable.
To stay on top of it, keep a record of:
When you bought and sold each asset
How much you bought and/or sold
What it was worth in fiat at the time
Any fees paid along the way.
These details make life way easier when tax season rolls around — or if your accountant gives you that look.
Know your local rules
Crypto laws aren’t one-size-fits-all. Every country has its own stance, and even within the same country, rules can vary depending on how you’re using crypto.
In the US, for example, selling crypto could fall under capital gains tax rules or even money transmission laws, depending on how you’re moving the funds. Other countries might have more lenient — or much stricter — regulations.
So, here’s what to do:
Look up your local crypto tax laws (even if they seem vague or outdated).
Stay current — regulations are evolving fast.
Talk to a pro if you’re unsure. A crypto-savvy accountant or legal adviser can help you avoid nasty surprises.
Even if you’re using non-KYC methods or decentralized tools, tax authorities may still expect a full report. Being proactive about it will save you headaches later — and might even save you money.
On April 3, yields on long-term US government debt fell to their lowest levels in six months as investors reacted to growing concerns over the global trade war and the weakening of the US dollar. The yield on the 10-year Treasury note briefly touched 4.0%, down from 4.4% a week earlier, signaling strong demand from buyers.
US 10-year Treasury yield (left) vs. Bitcoin/USD (right). Source: TradingView / Cointelegraph
At first glance, a higher risk of economic recession may seem negative for Bitcoin (BTC). However, lower returns from fixed-income investments encourage allocations to alternative assets, including cryptocurrencies. Over time, traders are likely to reduce exposure to bonds, particularly if inflation rises. As a result, the path to a Bitcoin all-time high in 2025 remains plausible.
Tariffs create ‘supply shock’ in the US and impact inflation and fixed-income returns
One could argue that the recently announced US import tariffs negatively impact corporate profitability, forcing some companies to deleverage and, in turn, reducing market liquidity. Ultimately, any measure that increases risk aversion tends to have a short-term negative effect on Bitcoin, particularly given its strong correlation with the S&P 500 index.
Axel Merk, chief investment officer and portfolio manager at Merk Investments, said that tariffs create a “supply shock,” meaning the reduced availability of goods and services due to rising prices causes an imbalance relative to demand. This effect is amplified if interest rates are declining, potentially paving the way for inflationary pressure.
Even if one does not view Bitcoin as a hedge against inflation, the appeal of fixed-income investments diminishes significantly in such a scenario. Moreover, if just 5% of the world’s $140 trillion bond market seeks higher returns elsewhere, it could translate into $7 trillion in potential inflows into stocks, commodities, real estate, gold, and Bitcoin.
Weaker US dollar amid gold all-time highs favors alternative assets
Gold surged to a $21 trillion market capitalization as it made consecutive all-time highs, and it still has the potential for significant price upside. Higher prices allow previously unprofitable mining operations to resume and it encourages further investment in exploration, extraction, and refining. As production expands, the supply growth will naturally act as a limiting factor on gold’s long-term bull run.
Regardless of trends in US interest rates, the US dollar has weakened against a basket of foreign currencies, as measured by the DXY Index. On April 3, the index dropped to 102, its lowest level in six months. A decline in confidence in the US dollar, even in relative terms, could encourage other nations to explore alternative stores of value, including Bitcoin.
US Dollar Index (DXY). Source: TradingView / Cointelegraph
This transition does not happen overnight, but the trade war could lead to a gradual shift away from the US dollar, particularly among countries that feel pressured by its dominant role. While no one expects a return to the gold standard or Bitcoin to become a major component of national reserves, any movement away from the dollar strengthens Bitcoin’s long-term upside potential and reinforces its position as an alternative asset.
To put things in perspective, Japan, China, Hong Kong, and Singapore collectively hold $2.63 trillion in US Treasuries. If these regions choose to retaliate, bond yields could reverse their trend, increasing the cost of new debt issuance for the US government and further weakening the dollar. In such a scenario, investors would likely avoid adding exposure to stocks, ultimately favoring scarce alternative assets like Bitcoin.
Timing Bitcoin’s market bottom is nearly impossible, but the fact that the $82,000 support level held despite worsening global economic uncertainty is an encouraging sign of its resilience.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Using blockchain technology to support real-world infrastructure, DePIN creates tangible value and generates real revenue, says Fluence Network’s Tom Trowbridge.
Technical indicators alongside macro-economic factors are prompting analysts to predict further downward momentum for the SPDR S&P 500 ETF Trust (NYSE:SPY) and Bitcoin (CRYPTO: BTC).
What Happened: In a podcast on Thursday, prominen analyst Benjamin Cowen warned that the S&P 500’s decline could extend into April, resembling past market downturns that have had ripple effects across both equities and crypto.
While March has historically marked a bottoming point during corrections—such as the financial crisis and pandemic crash—Cowen notes that sometimes the downturn extends into April.
One key date is mid-April, when the next inflation print is released. With new tariffs in focus, investors …
The latest round of tariffs from the Trump administration and their potential to erase trillions of dollars from the stock market.
Negative SOL futures basis and funding rates.
Multiple technical factors.
Let’s examine these catalysts in detail.
Trump tariffs rattle Solana and broader crypto market
Solana’s decline occurred in the wake of US President Donald Trump’s April 2, “Liberation Day” tariffs. The escalation in trade tensions led investors to move away from riskier assets, including cryptocurrencies like SOL, in favor of safer investments.
SOL/USD vs. TOTAL crypto market cap and Nasdaq Composite daily performance chart. Source: TradingView
SOL’s recent price decline is closely tied to fading demand in its futures market, as reflected by a sharp drop in the annualized rolling basis on three-month contracts.
The annualized rolling basis shows how much more (or less) futures contracts are trading compared to the current spot price, expressed as an annual percentage.
A high basis means futures are trading at a significant premium, signaling bullish expectations and strong demand for leveraged long positions. On the other hand, a low or negative basis means futures are trading close to or below the spot price, indicating a lack of speculative interest or growing bearish sentiment.
SOL futures basis peaked in mid-November 2024 at 18% and was below 0% as of April 3, showing that traders are no longer paying a premium for SOL.
Solana futures annualized rolling basis. Source: Glassnode
Solana’s funding rates turn negative
Solana’s price drop further aligns with its declining funding rates, indicating a weakening bullish momentum in the market.
SOL’s weekly funding ratesslipped to -0.0462 on April 3 from 0.14% a day ago, and this negative funding means short traders are paying longs, highlighting the expectation for further downside.
SOL OI-weighted funding rates. Source: CoinGlass
Currently, SOL’s daily chart shows a pattern of bear flag continuation, a process where consecutive bearish structures confirm and drive prices lower.
As of April 3, SOL was trading below its flag pattern’s lower trendline, projecting a price decline to $96.
SOL/USD daily price chart. Source: TradingView
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
