31.03.202113:11 Forex Analysis & Reviews: Crypto market plunged. BTC/USD sank by $3,000

After a long stagnation, the cryptocurrency market has found momentum for growth. Over the past 5 days, the total cryptocurrency market capitalization has reached $1.86 trillion. Bitcoin and major altcoins were slowly but surely approaching key positions for further growth. However, as of March 31, the cryptocurrency market shows negative dynamics and a drop in total capitalization by 1%.

This behavior of the main digital assets does not seem entirely justified given the positive news background, as well as the end of the bitcoin expiration, which also put pressure on the market. Despite this, on Tuesday, the quotes of the BTC/USD pair reached an important milestone of $60,000, but over the past day, they fell by $3,000. At the same time, the positive dynamics of the total trading volume remain, which amounted to $197 billion. On March 31, the asset is holding at around $58,000, and this looks quite logical. The currency did not have enough margin of safety and interest of large investors to stay above the $60,000 mark.

At the same time, a positive news background continues to persist around bitcoin. Cryptocurrency platform Bakkt, together with Starbucks, introduced a mobile wallet for transactions with bitcoin. Also, Europe's largest cryptocurrency holder reported that it doubled its annual profits thanks to its first digital asset. Thus, the positive news background and increasing trading volumes will allow Bitcoin to stay close to the psychological mark. Retailers are currently showing interest in the BTC/USD pair, which will allow the cryptocurrency to update its all-time high. At the same time, without the interest of institutional investors, the asset can painfully sink in price due to the correction after a new record.

The case of the ETH/USD pair has worsened, which on Tuesday held positions at $1,860, but over the past day sank by 2%. As of March 31, Ethereum quotes remain in the region of $1,800, and the total trading volume is $28.8 billion. The general market downturn and the lack of interest from large investors pushed Ethereum away from important indicators. At the same time, the ETH/USD pair stands out against the background of other cryptocurrencies due to an early network update to version ETH 2.0. The market is holding its breath in anticipation of the launch of a new platform that will give Ethereum a huge leap forward in development and value.

A serious decline was outlined in the Ripple token, which sank by 7% over the past day. The current readings of the XRP/USD pair are $0.540. Despite Ripple's purchase of a 40% stake in Tranglo, the momentum has passed, and now the asset's quotes are more dependent on the course of the litigation between the SEC and Ripple.

Litecoin continues its downward movement over the past day. On March 30, the asset showed a symbolic growth of 0.6% and dropped in price by 3.5% in 24 hours. Now the quotes of the LTC/USD pair remain at $190 and show minimal prerequisites for further growth. The asset may close at $195-$200 in today's trading, but will not fix at this level.

The positive news background, as well as the impetus from Tesla, PayPal, and Visa, allowed the cryptocurrency market to start gradual growth, but it is obvious that the main crypto asset and altcoins lack a margin of safety. That is why digital coins sank in price, getting close to psychological marks, near historical highs. This situation could be corrected by the increased attention of the institutional investor, which did not follow the example of the payment giants. This may be because large companies have taken a wait-and-see attitude, waiting for important announcements related to the creation of EFT-bitcoin in the United States and the update of Ethereum to version 2.0.