The cryptocurrency market witnessed a notable downturn, with Bitcoin (BTC) plunging 6% to fall below the $62,500 mark. Ether (ETH), on the other hand, barely managed to maintain its position just above $3,000. This decline in value was part of a broader sell-off in the digital asset space, which saw The CoinDesk 20 – a metric for the world’s largest and most liquid digital currencies – drop by 8%. The shift in market dynamics was further evidenced by the Bitcoin Trend Indicator (BTI), CoinDesk’s daily signal for tracking the direction and strength of Bitcoin’s price trends, flipping to neutral from its previously bullish stance. This indicates a significant weakening in the momentum for potential price increases.
Amidst the volatility affecting established cryptocurrencies, altcoins experienced even steeper declines. Dogwifhat (WIF) suffered an 18% loss, Ethena Labs’ ENA dropped by 14%, and Immutable X saw a 16% decrease over a 24-hour period. Other notable cryptocurrencies such as Solana (SOL) and Avalanche also faced significant losses, with SOL declining by 12% and Avalanche by 9%, effectively wiping out its gains since the beginning of the year.
In the backdrop of market fluctuations, OKX, the fourth-largest cryptocurrency exchange by trade volume, announced the launch of its new layer-2 blockchain, X Layer, on its public mainnet. Previously known as X1, X Layer utilizes the Chain Development Kit (CDK) from Polygon, allowing developers to create customizable chains leveraging zero-knowledge technology. With this move, OKX joins other prominent crypto exchanges such as Coinbase and potentially Kraken, which have ventured into developing their proprietary layer-2 networks aimed at enhancing scalability and reducing transaction costs.
Despite the underperformance of Bitcoin miners in comparison to the direct cryptocurrency market and related exchange-traded funds (ETFs), industry CEOs remain optimistic about the future, especially with the upcoming reward halving event. According to a research report by brokerage firm Bernstein, the significant shifts in spot bitcoin and ETFs have redirected much of the retail liquidity away from mining stocks. Moreover, there are growing concerns regarding the impact of the halving on miners’ revenues. The anticipated halving, set to occur around April 19-20, will reduce the rewards miners receive, effectively slowing the rate of new Bitcoin entering circulation. This quadrennial event is closely watched by market participants for its potential effects on the cryptocurrency’s value and the broader ecosystem.
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