Crypto Markets Plunge 3.3% as Profit-Taking Hits Bitcoin, Ether, ADA

Bitcoin (BTC) and other major cryptocurrencies experienced a significant decline, losing more than 3% as the rally from Tuesday was met with profit-taking during the Asian morning hours on Wednesday. This movement was in line with expectations, as the overall crypto market capitalization fell by 3.3% in the past 24 hours. Bitcoin's price dropped to nearly $83,500 from a high above $84,200 the previous day. Ether (ETH) and Cardano’s ADA were among the hardest hit, each falling as much as 5%.

XRP showed steady declines, with price action suggesting a potential plunge in the coming days. However, there was a positive development on the fundamentals front, as exchange-traded fund (ETF) provider ProShares amended its spot XRP ETF filing on Tuesday. This amendment targeted a launch date of April 30, indicating a potential boost for XRP in the near future.

According to on-chain analysis firm CryptoQuant, Bitcoin selling by large investors has eased as they realize losses. Daily Bitcoin selling from large investors has declined from a high of 800,000 BTC in late February to a daily rate of about 300,000 BTC. Analysts noted that the slowdown in selling has come as these investors have been realizing losses since late February amid low prices. However, accumulation by large investors remains weak. Their holdings declined by approximately 30K BTC over the past week, and their monthly accumulation rate dropped from 2.7% at the end of March to just 0.5%—its slowest pace since February 20.

A slump in major cryptocurrencies came as stocks in China extended their losses to as much as 2.9% after Wednesday’s open, despite the Chinese economy growing 5.4% in the first quarter. The extent of tariff impact remains a concern among traders, whose risk-off moves eventually weigh down crypto markets.

James Toledano, Chief Operating Officer at Unity Wallet, commented on the intensifying fears of a U.S. recession, with major institutions revising their forecasts sharply upwards. Economic growth is forecast to stall at anywhere between 0.1% and 1%, and many believe these risks are already priced into equities. However, Toledano is not so sure that we’ve even seen the bottom. He also noted that Bitcoin’s appeal as a decentralized asset grows, especially as traditional markets face volatility. While policies have introduced significant macroeconomic uncertainty, they may paradoxically be fueling Bitcoin’s recent rise—though the risks remain elevated for all markets, crypto included.