Bitcoin's Weakest Quarterly Close Since 2018?
Also in this issue: XRP's price struggles post-SEC win, Uniswap's ranking drop, and how Fed liquidity injections might ignite a crypto recovery.
TL;DR – Key Crypto Market Trends
Bitcoin Price Analysis: BTC poised for its worst Q1 in 7 years, testing $65K support.
Ethereum Upgrade News: ETH drifts sideways; bullish activity hinges on Dencun upgrade.
Liquidity Injection Watch: Fed signals easing, fueling optimism for a crypto rally.
XRP Price Prediction: Down 11% despite SEC clarity; sentiment remains weak.
DeFi Adoption Challenges: Uniswap’s ranking slips, with activity and engagement declining.
Macro Hedging Strategies: Gold outshines Bitcoin as institutional investments shift.
Price Update
Bitcoin Price Analysis: $65K Support Tested Amid Weak Q1 Performance
On-chain metrics reveal Bitcoin is on track to close its weakest quarter since the 2018 bear market. Testing the critical $65K support level, BTC has seen diminished institutional activity, with U.S. spot ETFs recording their first significant outflow streak in over 10 days.
Pre-halving uncertainty and profit-taking pressures are driving the bearish sentiment. However, accumulation behavior among whales suggests long-term confidence in Bitcoin’s trajectory. Traders should watch for a breakout above $68K, which could signal a trend reversal, or prepare for a potential dip as low as $62K if $65K fails to hold.
Ethereum Upgrade News: ETH Awaits Catalyst as Dencun Looms
Ethereum continues to mirror Bitcoin’s lackluster performance, trading in a narrow range without clear direction. On-chain data shows a decline in active addresses and dwindling inflows, raising concerns about weak momentum.
A potential bright spot lies in the much-anticipated Dencun upgrade, expected to roll out next quarter. Historically, major improvements in Ethereum’s ecosystem have translated into price rebounds. Traders should monitor staking rates and Layer 2 adoption for early signs of renewed bullish activity.
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Market Trends
Liquidity Injection Watch: Fed’s Easing Could Reignite Risk Assets
The Federal Reserve’s recent signals toward monetary easing have fueled speculation that fresh liquidity injections could breathe life into risk assets, including crypto. Historically, Bitcoin and Ethereum have led market rallies during periods of monetary stimulus, and investors are now watching closely for macro shifts.
Monitor the timeline for Fed policy changes. An accelerated pivot could spur Bitcoin to reclaim its status as a macro hedge, while slower liquidity materialization could extend the current bearish trend.
Macro Hedging Strategies Shift to Gold Over Bitcoin
Institutional investors continue to favor gold over Bitcoin amid geopolitical and economic uncertainty. Gold has seen steady inflows, while Bitcoin’s narrative as “digital gold” faces skepticism.
For Bitcoin to reassert itself as a macro hedge, breaking through $70K resistance will be crucial. Short-term traders might consider hedging strategies or diversifying into both digital and traditional assets as part of their portfolio planning.
Legal & Regulation Events
XRP Price Prediction: Post-SEC Clarity Fails to Lift Sentiment
Despite the positive headline of the SEC dropping its appeal against Ripple, XRP has fallen 11% this week. On-chain activity paints a bleak picture, with a 70% drop in active addresses, declining from 1.2 million to just 360,000.
This disconnect between legal clarity and market sentiment suggests that the regulatory win isn’t enough to drive long-term growth without stronger community engagement and real-world use cases. XRP traders should focus on whether upcoming announcements around utility partnerships can reinvigorate the price.
Terraform Labs and Creditor Claims Deadline
Terraform Labs’ creditors have until the end of April to file claims related to the Terra-LUNA collapse. This bankruptcy update marks a critical point in the resolution process, with implications for retail and institutional investors alike.
Analysts expect disputes over asset valuations and liabilities to prolong the process. For affected parties, submitting complete and verified claims early is crucial to maximizing recoveries.
Don’t Miss Anything
DeFi Adoption Challenges Highlighted by Uniswap Drop
Uniswap, once a dominant force in the DeFi landscape, has seen a noticeable decline in activity. Its drop in the Apple App Store rankings reflects waning user engagement and shrinking trading volumes. On-chain metrics suggest users are pivoting to Layer 2 solutions and alternative decentralized exchanges with simpler interfaces and lower fees. DeFi enthusiasts may want to explore competing platforms offering better token incentives or user experiences.
Pi Network Price Crumbles Despite Telegram Integration
Hype around Pi Network’s Telegram Wallet integration has failed to prevent its ongoing price collapse. Investors continue to question the token’s fundamentals, despite the integration’s potential to boost utility.
Pi Network illustrates a broader lesson in crypto markets: even promising partnerships can fall flat without robust tokenomics and clear use cases. Future announcements will need to focus heavily on addressing these gaps to regain investor trust.
Crypto markets are at a pivotal point. Bitcoin’s technical levels will dictate near-term momentum, while Ethereum’s upgrade and Fed-driven liquidity shifts hold promise for a larger recovery. XRP’s struggles highlight the gap between legal victories and market trust, while DeFi platforms like Uniswap must adapt to consumer demands or face further downturns.
