Bitcoin and Major Cryptos Slide Amid Chinese Stock Losses and Profit-Taking
A downturn in major cryptocurrencies followed a significant drop in Chinese stocks, which saw losses extend to as much as 2.9% after the Wednesday market open, despite a 5.4% growth in China’s economy during the first quarter.
Bitcoin (BTC) and other leading tokens dropped over 3%, as traders capitalized on Tuesday’s rally with profit-taking during the early Asian trading session on Wednesday — aligning with market expectations.
Overall, the cryptocurrency market capitalization declined by 3.3% over the past 24 hours. Bitcoin fell from a high above $84,200 to nearly $83,500, while Ether (ETH) and Cardano’s ADA saw losses of up to 5%, leading the decline among major cryptocurrencies.
XRP also showed steady declines, with market movements indicating potential further drops in the coming days. However, the cryptocurrency’s fundamentals saw some improvement, as ProShares amended its filing for a spot XRP ETF in the U.S., with a launch date targeted for April 30.
Large investors in Bitcoin have reduced their selling activities, according to on-chain analysis firm CryptoQuant. Daily Bitcoin selling from these investors has dropped from 800,000 BTC in late February to about 300,000 BTC now. This slowdown in selling comes as large investors have been realizing losses since late February during the price dip.
Despite this, accumulation from large investors remains low. Their holdings have decreased by approximately 30,000 BTC over the past week, and their monthly accumulation rate has fallen from 2.7% at the end of March to just 0.5%, marking the slowest pace since February 20.
The decline in major cryptos coincided with a further slump in Chinese stocks, which continued to fall after Wednesday’s open despite strong first-quarter economic growth in China.
Concerns over the impact of tariffs remain a key worry among traders, whose risk-averse behavior has contributed to downward pressure on cryptocurrency markets.
James Toledano, COO of Unity Wallet, shared his thoughts with CoinDesk, saying, “There can be no doubt that fears of a U.S. recession are intensifying, with major institutions sharply revising their forecasts upwards. Economic growth is forecast to stall between 0.1% and 1%, and while many believe these risks are already priced into equities, I’m not sure we’ve seen the bottom yet.”
He also noted, “Bitcoin’s appeal as a decentralized asset seems to be growing, especially as traditional markets face volatility. While Trump’s policies have introduced significant macroeconomic uncertainty, they may paradoxically be fueling Bitcoin’s rise — though risks remain high for all markets, including crypto.”
