- The crypto market is down 1% after April’s surge, with Bitcoin cooling off and privacy coins like Monero and zCash still gaining.
- Ethereum braces for volatility ahead of its May 7 hardfork, while institutional investment remains strong.
After a sharp rally in the second half of April, the cryptocurrency market appears to be catching its breath. Currently, the market is down roughly 1% over the past week, with total capitalization hovering at $2.94 trillion. While the pullback may feel like a dip, many analysts see it as a healthy cooldown after a strong push upward.
Privacy Coins Stay in the Green
Leading the gainers are privacy-focused cryptocurrencies like Monero (XMR) and zCash (ZEC), which remain in positive territory. Their recent surge came on the heels of a major hacker theft, serving as a reminder of the unique advantages these coins offer in terms of anonymity and security.
Also read: KuCoin Denies 77% Bitcoin Reserve Drop Linked to KYC Rollout
Bitcoin Mirrors Stock Market Sentiment
Bitcoin (BTC), still the dominant player in the crypto sphere, has tracked closely with U.S. equity indices. After a heated run-up, it’s showing signs of consolidation—interpreted by many as a needed pause before the next leg higher. With 88% of BTC supply still in profit and no mass capitulation in sight, long-term investors remain steady.
XRP Struggles to Gain Traction
XRP, on the other hand, missed the April rally and continues to trade under key moving averages. At $2.09, it’s testing long-standing support levels. A decisive move in either direction could signal a dramatic shift, with the potential for a 50% price swing.
Ethereum Braces for Post-Fork Volatility
Ethereum (ETH) could see increased turbulence following the Pectra hardfork slated for 7 May. Tightening Bollinger Bands on the ETH/BTC pair suggest a breakout is near, with directionality yet to be determined. ETH saw inflows of $149 million last week, signaling rising investor interest ahead of the fork.
Institutional Momentum Continues
According to CoinShares, crypto funds attracted $2.029 billion in new capital last week, with Bitcoin accounting for the lion’s share. Notably, Strategy added 1,895 BTC to its holdings, now sitting on a total of 555,450 coins valued at over $38 billion.
In summary, while the market takes a short-term breather, underlying fundamentals and institutional appetite suggest the crypto space remains robust—and far from descending.
