The cryptocurrency market saw significant losses Wednesday as investors took profits following a Tuesday rally and concerns about an impending recession weighed on investor sentiment. Major cryptocurrencies, including Bitcoin, Ethereum, XRP, Solana, Dogecoin, and Cardano all experienced drops exceeding 3%, according to Coingecko data. The total market cap for cryptocurrencies plummeted by over 4% in the last 24 hours to reach $2.73 trillion. Bitcoin’s price dropped below $83,600 after reaching a high of $84,200 earlier on Wednesday. Similarly, Ethereum and Cardano experienced declines of up to 5%. XRP continued its downtrend, with further drops likely, while the ProShares XRP ETF filing was met with cautious optimism. Investors remain cautious amid global economic concerns and impending regulatory changes, resulting in a retreat from risk assets such as cryptocurrencies. The decline is largely attributed to large investors taking profits following the recent price surge, as per CryptoQuant data. This has led to a significant reduction in Bitcoin investor activity, with daily sales now down to around 300,000 BTC compared to 800,000 BTC in late February. Analyst Ali Martinez highlights that whales have offloaded over 29,000 BTC since April 9th, while large-scale cryptocurrency holdings have declined by approximately 30K BTC last week. Meanwhile, the decline in crypto prices coincided with a drop in Hong Kong stocks as well. The impact of Nvidia’s stock decline is also being felt The market witnessed a broader downturn on Tuesday evening following a significant drop in Nvidia’s stock price, triggered by a $5.5 billion charge resulting from the US government’s decision to ban Nvidia from selling H20 chips to China. This led to Bitcoin dropping below $83,600 and XRP and Cardano experiencing falls exceeding 2% and 4%, respectively. The decline in the tech sector further impacted the crypto market. This downturn was compounded by a drop in AI-related coins, as Nvidia’s stock price dropped 8%. The company anticipates losing $5.5 billion in Q1 due to restrictions on its H20 chip exports to China. Market volatility is expected to continue with investors awaiting Fed Chairman Jerome Powell’s speech later today where he will address the US economy and market expectations for potential rate cuts amid rising recession concerns. Stablecoins remain a stabilizing factor As cryptocurrencies see increased volatility, stablecoins like Tether (USDT) and USD Coin (USDC) are proving to be crucial as they offer stability in volatile times. Tether currently trades at $0.9999, with a market cap of $144.56 billion. While USDC is trading at $1, these stablecoins act as key resources during such market volatility. Awaiting the Fed’s guidance The ongoing trade war and Trump tariffs are fueling uncertainty in the market, which is further amplifying concerns about a potential recession. Analysts predict that despite some investors factoring the risks into current market movements, the downturn may not be over yet. Bitcoin’s appeal as a decentralized asset is gaining momentum as the traditional markets experience volatility. However, concerns remain about the potential impact of Trump’s policies on crypto markets and Bitcoin’s overall performance.