Bitcoin and XRP Prices Slip. Here's What's Dragging Crypto Down.

On the higher time frame, Bitcoin appears to still be in a bearish market with the asset recording a 21.7% decrease away from its all-time high (ATH) above $109,000 recorded in January.

However, when slightly zoomed in, it is seen that the asset is seeing a gradual and steady rebound surging 6.8% in the past week to bring its asset closer to the psychological $90,000 mark with a current trading price hovering above $85,000.

The latest analysis from CryptoQuant analyst Crypto Dan offers context for this cautious optimism. In a post titled “Why does this cycle feel so boring?”, Dan explained that, unlike previous bull cycles that featured fast-paced rallies and surging interest from short-term participants, the current cycle appears subdued.

Why The Current Cycle Is Different

One major indicator supporting Dan’s observation is the notably lower percentage of Bitcoin held for short durations (1 week to 1 month), reflecting minimal engagement from newer market entrants. Dan attributes this behavioral shift to two primary structural changes. First is the macroeconomic environment.

In contrast to the aggressive liquidity injections and near-zero interest rates of the 2020–2021 period, the current market faces tight liquidity and high interest rates, reducing the pace and scale of capital inflows. Second is the transition in market leadership from retail traders to institutional investors.

The approval and growing adoption of Bitcoin exchange-traded funds (ETFs) have transformed the nature of capital movement into the space, making price movements more measured and incremental.

As a result, the market’s development is more cautious, lacking the euphoria typically seen in previous cycles. Dan emphasized that while some on-chain metrics may suggest a cycle top, the current structure could instead be pointing to a more extended and gradual market evolution.

He suggested that long-term patience, rather than short-term speculation, may yield better outcomes under these conditions, noting:

Bitcoin On-Chain Metrics Signal Strength Despite Unusual Cycle

Supporting this longer-term perspective, another CryptoQuant analyst elcryptotavo noted that a key on-chain metric remains strong. According to his analysis, over 70% of the Bitcoin supply remains in profit—a level historically associated with price stability.

This metric tracks the percentage of circulating BTC with a cost basis below the current market price. A supply-in-profit ratio that remains elevated, particularly above the 70% mark, has often served as a foundation for further upward momentum.

Elcryptotavo added that the next target is to push this metric back toward the 80% level, which would reinforce bullish momentum and possibly sustain the current upward trend.

If this threshold is achieved alongside improving macro conditions and continued ETF inflows, Bitcoin could see renewed strength even in the absence of speculative enthusiasm.Featured image created with DALL-E, Chart from TradingView

Soneium, a layer-2 (L2) blockchain network developed by Sony Block Solutions Labs, said it has slashed its blockchain finality time by over 98%, as it aims to solve one of the biggest challenges in blockchain scalability.

Astar, a Japanese Web3 adoption collective bridging Astar Network and Soneium, announced a strategic partnership with AltLayer and EigenLayer to launch a “Fast Finality Layer” for Sony’s L2 blockchain.

In blockchain settlement, finality is the assurance that a transaction is irreversible, which happens after it is added to a block on the blockchain ledger.

The new finality layer provides a crypto-economic security guarantee through a decentralized network of validators to reduce the reliance on centralized sequencers and enable more secure crosschain interactions.

Chinese local governments have been selling seized cryptocurrencies via private companies despite an ongoing crypto trading ban in mainland China, according to Reuters.

Amid a slowing economy, local governments have been selling crypto assets confiscated from illicit activities for cash to replenish public coffers — a practice that legal experts say could lead to opaque processes and foster corruption — Reuters reported on Wednesday, citing transaction and court documents.

China continues to ban cryptocurrency trading and mining activities on the mainland, while Hong Kong has repeatedly expressed its ambition to become a crypto hub with a trading licensing regime. The Chinese authorities, however, have enlisted local companies to help dispose of seized crypto assets. While it is illegal for individuals to trade crypto, operating a business that assists the government in selling crypto remains legitimate — which has attracted a growing number of participants — the report said.

For example, Shenzhen-based tech firm Jiafenxiang has facilitated the sale of over 3 billion yuan ($408 million) worth of cryptocurrencies in offshore markets since 2018, acting on behalf of several local governments in Jiangsu province, including the cities of Xuzhou, Hua'an, and Taizhou, according to the report.

Transaction records cited by Reuters show that U.S. dollar proceeds were first converted into yuan through local banks and then transferred to regional finance bureau accounts.

According to data from BitcoinTreasuries.net, China holds about 190,000 BTC, making it the world’s second-largest national holder of bitcoin, behind the U.S., which holds 198,012 BTC.

Handling crypto in legal cases has become a key topic in the country’s judicial system, with authorities holding multiple seminars on the issue. For example, in February, representatives from the Supreme People's Court and several other top judiciary authorities and universities gathered in Beijing for a seminar to discuss research studies and the legal treatment of cryptocurrency.

In December, the PBOC, the central bank, highlighted crypto regulation in its latest annual financial stability report, noting that it is working to improve an international regulatory framework for crypto assets.

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The crypto community is abuzz as the prominent blockchain tracker Whale Alert shared the details of a transaction that moved a whopping 131,000,000 XRP anonymously. Still, additional on-chain data helped to shed light on the identity of the recipient.

Whale Alert is widely known in the crypto space for monitoring large cryptocurrency transactions and sharing the details on its X account and website.

This transaction coincided with a decline of 5.37% experienced by XRP over the past day.

131,000,000 XRP on move, recipient unveiled

The aforementioned data source reported that two unknown wallets had exchanged a massive amount of crypto – 131,000,000 XRP. At the time of the transfer, this XRP chunk was valued at $273,945,648.

The XRP community became intrigued by this massive transaction between anonymous wallets and began to guess as to the likely purpose of this transfer. Many assumed it was a large over-the-counter sell. One X user, however, stated that this was allegedly a transaction made between wallets affiliated with the Binance crypto exchange.

Still, the details of the transaction provided by XRP-focused data platform Bithomp show that the receiving wallet indeed is linked to Binance, while the owner of the sending wallet was not identified.

Earlier this week, Whale Alert spotted two other large XRP transfers. On April 14, an anonymous wallet exchanged 70,000,000 XRP worth $150,361,090. The community believes it was an internal Ripple transfer linked to its Ripple Payments system.

On the following day, an unknown whale shoveled 29,532,534 XRP to the largest cryptocurrency in the U.S. – Coinbase. However, according to Bithomp, it was an internal Coinbase transaction.

Ripple integrates RLUSD into Ripple Payments

Earlier this week, Ripple cryptocurrency giant reported that its most recent product, dollar-pegged stablecoin RLUSD, has been fully integrated into the Ripple Payments network. The stablecoin was issued after the company secured the necessary licenses and regulatory permissions. It is 100% backed by deposits in U.S. dollars, government bonds or other cash equivalents. The leading independent accounting and consulting company BPM conducts RLUSD audits on a monthly basis.

As Ripple said in a blog post, Ripple Payments has already processed a transaction volume of more than $70 billion across more than 90 payout markets. RLUSD is becoming popular because it is focused on compliance, transparency and security.

Bitcoin edges lower after Nvidia said it faces a $5.5 billion hit from tighter U.S. rules on shipments of its new artificial intelligence chip to China. The microchip maker will require licences to export its chip to China as the U.S.-China trade war escalates. "Trump also launched a probe into whether critical minerals should face tariffs, so that added to fears that further tariffs were on the horizon," Deutsche Bank analysts say in a note. That raises fears that the trade war could still get worse from here, they say. Bitcoin falls 0.9% to $83,215, according to LSEG. (renae.dyer@wsj.com)

By Dow Jones Newswires Staff

Global markets traded lower with U.S. futures set to fall as investor confidence sours on signs of escalating trade tensions between the U.S and China.

U.S. President Trump has imposed restrictions on chip maker Nvidia's exports to China and his administration is set to examine whether critical minerals should face tariffs. The company said Tuesday that it expects to book an up to $5.5 billion charge due in its fiscal first quarter due to the restrictions, causing its shares to fall.

• European indexes fell at the open with semiconductor stocks tumbling. ASML Holding reported orders below analysts' projections and said Trump's erratic tariff policies were creating uncertainty for the industry. It traded down 6% while industry peers ASM International and BE Semiconductor Industries were both down over 3%.
• Europe's STOXX 600 index was down 1.3%, Germany's DAX was down 1.1% and London's FTSE 100 index was down 0.8%.
• U.S. Treasury yields were largely unchanged, showing further signs of stabilization after last week's turmoil. The two-year Treasury yield fell 3.5 basis points to 3.793% while the 10-year yield fell two basis points to 4.302%. The 30-year yield was down one basis point at 4.762%. Eurozone bond yields fell led by German Bund yields, while the 10-year Bund yield trades 5.5 basis points lower at 2.488%.
• In Asia technology stocks were the biggest fallers, causing the Japan's Nikkei and South Korea's Kospi to close down 1% and 1.2%, respectively. Stocks in mainland China closed mixed, with the Hong Kong's Hang Seng Index dropping 1.7% and the Hang Seng Tech Index sliding 3.3%.
• Futures for the S&P 500 traded down 1.3% and the Dow Jones Industrial Average was down 0.7% in early morning European trade.
• The dollar fell as investors question the U.S. exceptionalism and credibility as a reserve currency, Jefferies economist Mohit Kumar said in a note. The DXY dollar index fell 0.8% to 99.4290, the euro rose 0.9% to $1.1382 while the dollar fell 0.7% to 142.175 yen.
• Gold continued its upward price trend, with spot gold rising 2.3% to 3,312.40 an ounce. Meanwhile, Brent crude trades down 0.6% at $64.26 a barrel, while WTI fell 0.7% to $60.90 a barrel. The European benchmark price for natural gas, the Dutch futures contract TTF, was down 0.3% to 34.31 euros a megawatt hour.

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