Most of the other top altcoins are performing even worse than Bitcoin
Bitcoin fell further to $40,930 on April 11, marking the second day of declines from highs of $43,450. BTC is down 11.13% over the past week after repeatedly failing to break above the $47,000 level in early April. Terra’s $176 million Bitcoin purchase that took place on Sunday failed to support the price of the flagship cryptocurrency.
Most of the other top altcoins are performing even worse than Bitcoin over the past seven days, with Ethereum (ETH) and Shiba Inu (SHIB) shedding 6.07% and 5.71%, respectively, in the last 24 hours, per CoinMarketCap data. The majority of altcoins were also losing value at press time.
As previously covered by U.Today, Luna Foundation Guard (LFG), a Singapore-based nonprofit focused on strengthening the Terra blockchain, has scooped up another $176 million from Bitcoin. LFG now holds approximately $1.7 billion in the largest cryptocurrency.
Bitcoin trades at $41,224 while ETH was seen at $3,059 at press time.
Three potential reasons for the declines:
Investor fears
The Crypto Fear and Greed Index which measures market sentiment measured “fear” at press time, illustrating the pervasive sense of fear among investors. Currently, the index measures only 32/100, depicting fear. This reflects a change from last week’s “neutral” levels.
DXY strength
The dollar index (DXY), which gauges the greenback’s value versus different currencies, hit two-year highs above 100 earlier today. This month, the global reserve currency has gained 1.64%, according to data provided by TradingView. A strengthening DXY might impact cryptocurrency prices, as Bitcoin and altcoins are paired against USD.
Fed tightening fears
On Monday morning, the 10-year Treasury yield rose above 2.76%, while the 5-year and 30-year rates remain inverted. Fears that rising inflation and the Federal Reserve’s plans to aggressively tighten monetary policy will hamper economic development have pushed Treasury rates higher recently.
This week will see the release of two sets of inflation data: the March consumer price index on Tuesday and the producer price index from the previous month on Wednesday. There are no major economic data releases due out on Monday.
