Crypto: Fear lingers, but the market holds

Market overview

The crypto market capitalisation has increased by 1.3% to $2.35T over the past 24 hours, recovering to last Friday’s levels. This time, cryptocurrencies struggled to keep pace with equities, where technical oversold conditions, quarterly rebalancing, and positive signals regarding the US-Iran conflict coincided. 

Algorand stands out as the day’s leader, gaining over 22% amidst general market stagnation, whilst Zcash and Neo showed more modest but noticeable growth of between 4% and 7%. TRON, Bitcoin Cash, and Toncoin, which lost less than 1.5%, stand out against the predominantly green market with this moderate decline.

In contrast to market dynamics, the Fear and Greed Index had fallen by 3 points to 8, remaining deep in the extreme fear zone. Over the past month, the index has barely left this zone, fluctuating between 8 and 14, but this time external factors are well-positioned to fuel demand for cryptocurrencies and support a rebound.

Bitcoin is trading at $68.4K, up around 1.5% over the past 24 hours, building on a rebound from recent lows around $60K, which held the support line of the uptrend over the last two months, and making a fresh attempt to break above the 50-day MA.

The start of April ranks among the top three months for BTC. Over the past 15 years, Bitcoin has finished the month in the green 10 times and in the red only 5. The average gain was 20.9%, while the average decline was 8.8%.

News background

Investors are increasingly questioning Bitcoin's value amid a lack of clear short-term growth drivers, said Ran Neuner, founder of the media platform Crypto Banter. He noted that defining the role of the first cryptocurrency in the market is becoming increasingly challenging.

According to Google analysts, quantum computers may be able to hack Bitcoin sooner than expected. A successful attack on the BTC network might require significantly less computing power than previously believed. Nearly a third of all existing Bitcoins could potentially become vulnerable.

Nakamoto, a company led by David Bailey, Donald Trump’s former cryptocurrency adviser, has sold part of its Bitcoin reserves (284 BTC) at a 40% loss. Nakamoto’s shares have fallen by 99% over the past year.

The US Department of Labour has suggested new rules for 401(k) pension plans. The department intends to allow the inclusion of alternative assets, including cryptocurrencies, thereby lifting the restrictions introduced in 2022.

Standard Chartered has seen stablecoin trading double over the past two years, mainly driven by Circle’s USDC. This growth could lessen the need for new stablecoin issuance, provided transaction volumes continue to increase.