Ether (ETH), the second largest cryptocurrency by market value, struggled to maintain its gains above the $3,100 mark on Monday, following a volatile weekend in the crypto market. Despite being up 4% over the past 24 hours, ETH had dropped by about 4% from its peak of nearly $3,300 earlier in the day. The uncertainty was fueled by unconfirmed reports of multiple Hong Kong-based spot bitcoin and ether ETFs being approved.
The downward pressure was not limited to Ether, as Bitcoin (BTC) also saw a modest decline, dropping to $64,200 after briefly touching $67,000 earlier in the day. The broader CoinDesk 20 Index managed to stay positive, gaining 0.68% over the past 24 hours.
Solana (SOL) experienced a significant drop from its overnight highs, falling to around $140 from a peak of $155 on Monday morning and $175 on Friday. The weekend’s market turmoil, triggered by Iran’s bombing campaign on Israel, had caused Bitcoin, Ether, and other cryptocurrencies to plummet, with Bitcoin falling to around $61,000 and Ether dropping below $3,000. However, the market showed signs of recovery over the weekend.
In a note to investors, Singapore-based digital assets trading house QCP Capital highlighted the historical profitability of buying the dip during major geopolitical conflicts. Ed Goh, head of trading at liquidity provider B2C2, reported a consistent buying trend in BTC, with 57% of their flow directed towards the buy side. Altcoin activity remained high, with a bias towards buying for alts.
Looking ahead, traders are anticipating Bitcoin’s halving event on April 19, which could potentially trigger a “sell the news” reaction before and after the event. Despite the setbacks, some altcoins continued to see significant gains on Monday, with Ondo Finance (ONDO) up 15%, Render’s RNDR up 12%, and The Graph (GRT) rising 9%.
Overall, the crypto market remained under pressure following the weekend’s volatility, with investors closely monitoring developments and market trends. The uncertainty surrounding regulatory approvals and geopolitical events continued to impact prices, highlighting the inherent volatility of the cryptocurrency market.