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Between Oct. 25, 2024, and Jan. 16, 2025, XRP (XRP) had one of the best rallies of the current bull market, gaining 600% as investors piled in with the hope that a pro-crypto presidency would benefit Ripple and its cryptocurrency.

During this time, the quarterly average of daily active addresses jumped by 490% and XRP price hit a 7-year high.

Fast forward to the present, and data shows that the speculative interest surrounding XRP is declining. Holders are increasingly facing losses rather than gains, which is dampening their risk appetite.

“Retail confidence in XRP may be slipping”

Since bottoming in 2022, Bitcoin (BTC) and XRP have gained 500% to 600%, but the bulk of XRP’s gains came from a parabolic price increase. Data from Glassnode shows that XRP daily active addresses jumped by 490%, whereas the same metric for Bitcoin increased by 10% over the past four months.

This retail-driven surge pushed XRP’s realized cap from $30.1 billion to $64.2 billion, with $30 billion of that inflow coming from investors in the last six months. The share of XRP’s realized cap held by new investors (less than six months) jumped from 23% to 62.8%, signaling a rapid wealth shift. However, since late February 2025, capital inflows have dipped significantly.

The primary reason is that investors are currently locking in fewer profits and staring at higher losses. This can be identified by the realized loss/profit ratio, which has constantly declined since 2025. Glassnode analysts said,

“Given the retail-dominated inflows and largely concentrated wealth in relatively new hands, this alludes to a condition where retail investor confidence in XRP may be slipping, and this may also be extended across the broader market.”

Besides weakening confidence among newer investors, the distribution of XRP among whale addresses reflects a similar trend. Data shows a steady increase in whale outflows since the start of 2025, suggesting that large holders have been consistently trimming their positions. Over the past 14 days, over $1 billion in positions were offloaded at an average price of $2.10.

Related: How many US dollars does XRP transfer per day?

Can XRP hold the $2 support?

XRP has found support at $2 multiple times over the past few weeks, but the chance of the altcoin dropping below this level increases with each retest.

However, on the lower time frame (LTF) of the 1-hour and 4-hour charts, a bullish divergence can be observed for XRP. A bullish divergence occurs when the price forms a lower low and the relative strength index (RSI) forms a lower high.

With a fair value gap between $2.08 and $2.13, XRP might see a relief rally into this range, especially if the wider crypto market undergoes an oversold bounce. On the higher time frame chart, XRP appears bearish due to the formation of an inverse head-and-shoulders pattern, with a measured target near $1.07.

There is a chance that the altcoin finds support from the 200-day moving average (orange line) around the $1.70 to $1.80 mark, but XRP price has not tested this level since Nov. 5, 2024.

Related: Bitcoin drops 8%, US markets shed $2T in value — Should traders expect an oversold bounce?

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Economic uncertainty and a major crypto exchange hack pushed down the total value locked in decentralized finance (DeFi) protocols to $156 billion in the first quarter of 2025, but AI and social apps gained ground with a rise in network users, according to a crypto analytics firm.

“Broader economic uncertainty and lingering aftershocks from the Bybit exploit” were the main contributing factors to the DeFi sector’s 27% quarter-on-quarter fall in TVL, according to an April 3 report from DappRadar, which noted that Ether (ETH) fell 45% to $1,820 over the same period.

The largest blockchain by TVL, Ethereum, fell 37% to $96 billion, while Sui was the hardest hit of the top 10 blockchains by TVL, falling 44% to $2 billion.

Solana, Tron and the Arbitrum blockchains also had their TVLs slashed over 30%.

Meanwhile, blockchains that experienced a larger volume of DeFi withdrawals and had a smaller share of stablecoins locked in their protocols faced extra pressure on top of the falling token prices.

The newly launched Berachain was the only top-10 blockchain by TVL to rise, accumulating $5.17 billion between Feb. 6 and March 31, DappRadar noted.

Market fall didn’t stunt AI and social app user growth

However, the number of daily unique active wallets (DUAW) interacting with AI protocols and social apps increased 29% and 10%, respectively, in Q1, while non-fungible token and GameFi protocols regressed, DappRadar’s data shows.

The monthly average of DUAWs interacting on the AI and social protocols rose to 2.6 million and 2.8 million, while DeFi and GameFi protocols fell double-digits. 

DappRadar said there was “explosive growth” in AI agent protocols, stating that they’re “no longer a concept.”

“They’re here, and they’re shaping new user behaviors,” said the firm. 

Related: Avalanche stablecoins up 70% to $2.5B, AVAX demand lacks DeFi deployment

Meanwhile, NFT trading volume fell 25% to $1.5 billion, with OKX’s NFT marketplace taking in the most sales at $606 million, while OpenSea and Blur saw $599 million and $565 million, respectively.

Pudgy Penguins NFTs were the most sold collectibles at $177 million, while CryptoPunks NFTs netted $63.6 million from just 477 sales, DappRadar noted.

“When analyzing top collections, CryptoPunks remains a staple — its prestige remains intact even as price fluctuations make it largely inaccessible for the average user.”

Magazine: XRP win leaves Ripple a ‘bad actor’ with no crypto legal precedent set

EigenLayer plans to start “slashing” restakers on April 17, resulting in the Ethereum restaking protocol’s “first feature-complete iteration,” it said in an April 2 announcement. 

Implementing slashing will mark EigenLayer’s final step toward establishing the protocol as “infrastructure for a new generation of verifiable apps and services built on the Verifiable Cloud,” it said in a post on the X platform.

In 2024, EigenLayer started distributing rewards — including emissions of its native EIGEN token — to incentivize restakers. However, slashing has so far been limited to EigenLayer’s testnets.

Once slashing is live, node operators and restakers will be able to voluntarily “opt-in,” resulting in a gradual transition for users, EigenLayer said in a blog post.

Related: EigenLayer eyes consumer adoption post EIGEN unlock, founder says

Gradual roll-out

Launched in 2023, EigenLayer secures third-party protocols — dubbed actively validated services (AVSs) — against a pool of “restaked” cryptocurrencies used as collateral. 

Restaking involves taking a token that has already been staked — posted as collateral with a validator in exchange for rewards — and using it to secure other protocols simultaneously. 

Slashing is the primary method for securing proof-of-stake protocols — including Ethereum as well as “restaking” protocols such as EigenLayer — and involves penalizing a network’s node operators for poor performance or misbehavior.

“If Operators do not meet the conditions set, the AVS may penalize them. But, if the Operator runs the service successfully, AVSs can reward the Operator’s performance and incentivize specific activity,” EigenLayer said in an April 3 blog post. 

This “allows for a free marketplace where Operators can earn rewards for their work and AVSs can launch verifiable services,” the post said. 

Growing ecosystem

Upward of 30 AVSs are already live on EigenLayer’s mainnet, and dozens more are being developed.

They include EigenDA — run by EigenLayer developer Eigen Labs — and ARPA Network, a protocol specializing in trustless randomization.

In October, EigenLayer unlocked its native token, EIGEN. It is designed as a more flexible option for securing consensus-based protocols than other proof-of-stake tokens, such as Ether, according to EigenLayer.

EigenLayer is prioritizing onboarding crypto-native apps in segments such as decentralized finance (DeFi) and gaming before expanding beyond Web3, founder Sreeram Kannan told Cointelegraph in October. 

“We’re starting with the inside-out approach, focusing on high-throughput consumer apps like DeFi and gaming, but once we grow a little bigger and have critical mass, we’ll go outside and start targeting broader consumer markets,” Kannan said.

Magazine: XRP win leaves Ripple a ‘bad actor’ with no crypto legal precedent set

The cryptocurrency exchange Gemini, backed by Cameron and Tyler Winklevoss, plans to move into a Miami-area office space, as US Securities and Exchange Commission (SEC) enforcement case may have reached its end.

According to a March 31 post from Sterling Bay Properties, Gemini signed a lease for an office in Miami’s Wynwood Art District. The move would expand the exchange’s offices from Europe and New York to Florida, where some crypto companies are headquartered.

Bloomberg reported Gemini was expected to move into the Miami office by May. Cointelegraph reached out to the exchange for comment but did not receive a response at the time of publication.

Wrapping up regulatory issues?

The move to Florida came amid a federal judge ordering a 60-day stay on the SEC’s lawsuit against Gemini Global Capital “to allow the parties to explore a potential resolution.” The enforcement action, filed in January 2023, alleges the crypto firm offered and sold unregistered securities through its Gemini Earn program. 

Cameron Winklevoss said in February that the regulator had closed an investigation into a separate matter involving Gemini. The firm also agreed in January to a $5 million penalty imposed by the US Commodity Futures Trading Commission over alleged “false and misleading” statements related to its 2017 bid to offer Bitcoin (BTC) futures contracts.

Related: Crypto PAC-backed Republicans win US House seats in Florida special elections

Gemini reportedly filed confidentially for an initial public offering (IPO) earlier this year. The exchange may have pursued an IPO as early as 2021 before shares of many US-based crypto firms were publicly traded. 

Several crypto firms have regional offices in Miami, possibly due to Florida’s seemingly favorable regulatory environment and the lack of state income tax for residents. Ripple Labs has an office in the Wynwood neighborhood, not far from Gemini’s future location, and BTC miner MARA Holdings is headquartered in Fort Lauderdale.

Magazine: Crypto City: The ultimate guide to Miami

XRP (XRP) stabilized near its $2 support after today’s marketwide sell-off sent the altcoin and several other cryptocurrencies close to their swing lows.

Data now shows the XRP/USD pair exhibiting early signs of a bullish breakout. 

Ripple’s RLUSD integration could boost XRP price

Ripple’s integration of its RLUSD stablecoin into its cross-border payments system, Ripple Payments, could significantly boost XRP’s price by enhancing its utility and liquidity. 

On April 2, Ripple, the company behind XRP, announced that it had integrated its stablecoin into the company's cross-border payments system to boost adoption for Ripple USD (RLUSD).

RLUSD, a USD-pegged stablecoin launched in December 2024, complements XRP by providing stability for transactions, while XRP serves as a fast, liquid bridge currency. This dual-asset strategy targets the $230 billion cross-border payments market, and ims to increase demand for both assets. 

RLUSD’s market cap now stands at $244 million, with 87% growth in March alone, according to data from rwa.xyz. As adoption grows, financial institutions using Ripple Payments may rely more on XRP for liquidity, especially in volatile corridors. 

Pairing RLUSD with XRP on the XRP Ledger (XRPL) and exchanges could drive trading volume and activity on XRPL’s decentralized exchange, tightening XRP’s supply. 

Positive sentiment from RLUSD’s success could also lift XRP’s value, with analysts suggesting increased adoption might push XRP toward $3.50 or higher.

“Ripple's $RLUSD integration is a pivotal move for cross-border payments,” said crypto market insights provider Alva in an April 3 post on X.

As a result, “optimism around $RLUSD soaring, with eyes on its ripple effect on XRP,” Alva said, adding:

“Overall: A solid play for strengthening Ripple's ecosystem and pushing stablecoin adoption forward. Get ready for potential shifts!”

Related:  How many US dollars does XRP transfer per day?

XRP pattern points to $3.51 target

XRP’s price action between Jan. 16 and April 3 has led to the formation of a symmetrical triangle pattern on the daily chart. The price is retesting the lower trendline of the triangle at $1.98, suggesting that a rebound could be in the making.

Note that the price has successfully rebounded from this trendline two to three times in the past, with each retest leading to a significant price recovery.

If a similar scenario plays out, XRP could recover from current levels and with good volumes, it may break above the triangle’s descending trendline at $2.40 (embraced by the 50-day SMA).

The target is set by the distance between the triangle’s lowest and highest points, which would bring XRP price to $3.51, an approximate 73% gain from the current price.

Several analysts also share similar bullish outlooks for the altcoin, citing XRP’s adoption, chart technicals and the end of Ripple’s long-standing case with the SEC as the reasons. 

Citing a chart similar to the one shared above, XRP investor Steph Is Crypto said the price was “heavily compressing” before a massive breakout.

 “This breakout will create many new millionaires!”

Using Elliott Wave theory, crypto analyst Dark Defender shared an optimistic price prediction for XRP, saying that the token’s correction in the monthly timeframe “will be over within weeks.”

His targets remain between $5 and $18 in the medium and long term.

When #XRP hit $3.3999, we set a 5 Elliott Wave Structure and explained that XRP completed the Monthly 3rd Wave and entered into correction, Wave 4.

We set the Wave 4 dip with a precision of $2.02.

B is in action; we also have precise levels for B Wave.

While everybody… pic.twitter.com/CVlrkaVged

— Dark Defender (@DefendDark) April 2, 2025

According to CasiTrades, the XRP’s relative strength index shows a bullish divergence on multiple timeframes and this signals a price bottom, and an upside target of $3.80.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Key takeaways

• Not all tokens can be sold immediately. Airdropped or obscure tokens may lack liquidity or could be scams, so it’s important to check before attempting to cash out.

• Swapping and bridging may be required. To sell, you might need to convert tokens to ETH or stablecoins and bridge them to the Ethereum mainnet.

• MetaMask integrates fiat off-ramps. You can use the MetaMask Portfolio to sell ETH directly, but be prepared for KYC with third-party providers.

• Non-KYC and P2P options exist. Platforms like Bisq or LocalCoinSwap allow trading without ID, but they carry more risk and require caution.

There are plenty of ways you might end up with a mix of different cryptocurrencies sitting in your MetaMask wallet.

Maybe you work in Web3 — as a developer, copywriter or designer — and your client paid you in their project’s native token.

Or maybe you’re part of a Bitcoin mining pool and occasionally receive rewards straight to your wallet.

You could be farming yield in decentralized finance (DeFi), earning annual percentage yield (APY) on your locked assets. Or, perhaps the most straightforward of all: You completed a few SocialFi tasks and received some community tokens via an airdrop.

Whatever the case, you’ve got crypto in your MetaMask — and now you want to turn it into cash.

In this guide, you’ll learn all the ways you can sell your crypto and withdraw the funds to your bank account or even in cash — whether you’re going through official Know Your Customer (KYC) channels or sticking to more private, non-KYC routes.

Things to know before selling tokens on MetaMask

Before you can turn your tokens into cash, there are a few things you need to get sorted in MetaMask because “not all tokens are created equal.” It’s not always as simple as hitting a “sell” button — especially if you’ve just received tokens via an airdrop or from a lesser-known project.

1. Why some airdropped tokens can’t be sold (yet)

Just because a token shows up in your wallet doesn’t mean it’s ready to be sold. In fact, many airdropped tokens aren’t listed on exchanges at all. That means there’s no market where you can sell them — not yet, anyway. You might see a price attached to the token, but without buyers or liquidity, that value isn’t something you can actually realize right now. So, while it’s great to receive free tokens, they may end up sitting idle in your wallet for a while.

Did you know? If you see a “100% sell fee detected” warning on a token, it’s likely a scam. Scammers airdrop these tokens, hoping you’ll try to sell or interact with them. But when you do, the smart contract takes the full amount — leaving you with nothing. Worse, some link to fake decentralized applications (DApps) that ask you to “claim” or “unlock” the tokens. Connecting your wallet or signing a transaction there can let scammers drain your real assets.

2. Adding missing tokens to your wallet

Sometimes, you’ll receive tokens that don’t even show up in MetaMask at first. That doesn’t mean they’re not there — it just means MetaMask doesn’t recognize them by default. You’ll need to add them manually by grabbing the token’s contract address (usually from the project’s official site or Etherscan) and importing it into your wallet. Once you do that, your balance will show up properly.

Similarly, if you want to receive any asset other than Ether (ETH), the “Import Tokens” option lets you manually add these missing tokens so they show up in the assets list.

3. Getting ready to swap or bridge

Even if your tokens are visible in MetaMask and technically have value, that doesn’t always mean you can sell them for cash right away. Many smaller or newer tokens don’t have direct fiat trading pairs — so you won’t be able to exchange them straight into dollars or euros. 

To get around this, you’ll usually need to swap them for something more liquid, like ETH or a stablecoin such as USDC (USDC), which are more commonly supported by fiat off-ramps.

In some cases, your tokens might also be sitting on a different blockchain — like Arbitrum, BNB Chain or Polygon — while most fiat withdrawal options only support Ethereum mainnet. When that’s the case, you’ll need to bridge your tokens over to Ethereum before you can sell them.

One way to handle both of these steps — swapping and bridging — is by using platforms that combine them into a single flow. For example, with Symbiosis.finance, you can swap a token on one chain and receive a more widely accepted token on Ethereum, all in one transaction. This can save you a few steps and reduce the chance of user error when hopping between tools.

How to sell crypto with MetaMask

The simplest way to sell crypto that you hold on MetaMask is by using the application itself. Here’s what to do:

1. Open MetaMask portfolio: In your MetaMask extension or app, click the “Buy & Sell” button. This will take you to the MetaMask Portfolio site, where you can manage all your assets and begin the selling process.

2. Start the sale process: Click on “Move crypto” at the top of the page and select “Sell” from the dropdown options.

3. Choose your region and currency: MetaMask will ask for your country of residence and preferred fiat currency. This step ensures you’re shown accurate provider options and payout methods available in your area.

4. Enter sale amount: Select Ether and enter how much you’d like to convert.

5. Pick a payout option: Next, choose where you want the fiat to go. Depending on your region and provider availability, you might be able to send it to a bank account, PayPal or another method.

6. Compare offers: MetaMask aggregates offers from several third-party providers (like MoonPay, Transak, Sardine, etc.), showing you real-time exchange rates, fees and estimated payout times. Take a moment to compare and pick the best option for you.

7. Complete the sale: Once you’ve chosen a provider, MetaMask will guide you through sending the crypto. You’ll confirm the transaction in your wallet, and the funds will be transferred to the provider, who handles the fiat payout.

There are two things to keep in mind when using the MetaMask application:

• Firstly, while the application itself might not ask you for KYC, the third-party providers will. So, expect to get your documents ready for this one.

• Secondly, MetaMask’s sell feature only supports ETH on the Ethereum mainnet. This is where the bridging will come in as was explained earlier.

Withdrawing crypto via centralized exchanges

If you’d rather cash out your crypto through a centralized exchange, Coinbase is a popular option. It’s beginner-friendly, offers fiat withdrawals, and supports a wide range of assets. Just note: You’ll need to complete KYC verification before withdrawing any fiat.

Here’s how to do it, step by step:

1. Send crypto from MetaMask to Coinbase 

First things first: You’ll need to move your funds from MetaMask to Coinbase.

• Log in to your Coinbase account and hit “Send & Receive” at the top.

• Switch to the “Receive” tab, pick the crypto you’re sending (like ETH or USDC), and copy the wallet address Coinbase gives you.

• Make sure the network matches — for example, if you’re sending ETH, it should be on the Ethereum (ERC-20) network.

Now open MetaMask:

• Click “Send,” paste in that Coinbase address, and enter how much you want to transfer.

• Double-check the network — if you send it to the wrong one, your funds could disappear.

• Hit “Confirm,” and your crypto should show up in Coinbase after a few minutes.

2. Sell crypto for fiat on Coinbase

Once your funds land in Coinbase, it’s time to cash out.

• Head to “Buy & Sell” at the top and switch to the “Sell” tab.

• Choose the crypto you just received and decide how much you want to sell.

• Pick where you want the money to go — like your linked bank account, PayPal or your Coinbase balance.

• Review the details (including any fees), then hit “Sell.”

Did you know? When withdrawing via centralized exchanges, be cautious of minimum withdrawal amounts and any associated fees. Check these details in advance to make sure the limits and costs are acceptable to you before committing to this route.

Peer-to-peer with KYC

With peer-to-peer (P2P), you’re not selling your crypto to the exchange. Instead, you’re selling it to another user. You choose a buyer based on their offer and preferred payment method (like bank transfer, Revolut, Wise, etc.). Once they send the money to your account, you release the crypto to them. The platform holds your crypto in escrow during the process, so no one can just disappear with your funds.

With centralized exchanges, you’ll have to complete KYC before you’re able to trade in this manner. 

Selling via P2P on Binance

Go to Trade > P2P.

• Choose the coin you want to sell and browse the list of available buyers.

• Select a deal, confirm the order, and wait for the buyer to make the payment.

• Once the payment has arrived in your account, confirm it and release the crypto from escrow.

Did you know? Some peer-to-peer (P2P) cryptocurrency exchanges offer a “cash by mail” option, allowing users to send physical cash through postal services or couriers to settle transactions.

Cashing out of your MetaMask wallet without KYC

For those looking to convert cryptocurrency from their MetaMask wallet to fiat currency without undergoing Know Your Customer (KYC) verification, there are still a few viable paths.

Decentralized P2P platforms let you trade directly with other users, much like their centralized counterparts, though often with minimal or no KYC requirements. 

• LocalCoinSwap: A non-custodial P2P marketplace that supports a wide range of cryptocurrencies and payment methods, including cash. It offers escrow protection and emphasizes privacy.

• Bisq: A fully decentralized exchange that supports a variety of cryptocurrencies, including Bitcoin and Monero (XMR). It runs on a peer-to-peer protocol and doesn’t require user accounts or KYC.

However, without KYC, you’re responsible for vetting the person you’re trading with. Check their reputation, review any available trade history, and always follow platform safety guidelines.

Using cryptocurrency ATMs to withdraw crypto from MetaMask

Withdrawing funds from your MetaMask wallet using cryptocurrency ATMs — often referred to as Bitcoin ATMs — is an option that allows you to convert your digital assets into cash. Here’s how you can approach this method:

1. Locate a cryptocurrency ATM: Begin by finding a cryptocurrency ATM in your vicinity. Websites like CoinATMRadar provide directories of Bitcoin ATM locations worldwide, detailing the services they offer and the cryptocurrencies they support.

2. Prepare your MetaMask wallet: Ensure that the cryptocurrency you intend to withdraw is supported by the ATM. Bitcoin ATMs predominantly support Bitcoin (BTC), so you may need to use a decentralized exchange (DEX) to swap your current tokens for BTC within your MetaMask wallet. Be mindful of transaction fees and exchange rates during this process.

3. Initiate the withdrawal process: At the ATM, select the option to withdraw cash. The machine will prompt you to specify the amount you wish to withdraw and provide a QR code representing the ATM’s wallet address.

4. Transfer funds from MetaMask: Using your MetaMask wallet, scan the QR code provided by the ATM to input the recipient address accurately. Enter the exact amount of cryptocurrency required and confirm the transaction. Be aware that network congestion can affect transaction times.

5. Collect your cash: Once the blockchain confirms the transaction, the ATM will dispense the equivalent amount in cash, minus any applicable fees. This process can take anywhere from a few minutes to longer, depending on network conditions.

When using crypto ATMs, you should expect very high fees, and while small transactions don’t usually require KYC, larger ones still might.

Are MetaMask crypto transactions taxable?

Taxes aren’t the most exciting topic, but they matter when converting crypto from a MetaMask wallet into fiat. Selling crypto, whether through MetaMask, an exchange or a P2P deal, may trigger a taxable event, and understanding the applicable rules is essential.

Selling crypto = possibly taxable

In most countries, including the US, selling crypto for fiat (like US dollars, euros, etc.) is treated like selling property. That means if you bought ETH at $1,000 and sold it later for $1,500, you’ve made a $500 capital gain — and that’s usually taxable.

Even swapping one crypto for another (say, ETH for USDC) can trigger the same kind of tax obligation, even if no fiat is involved. So, yeah, it’s not just cashing out that counts — any trade can be reportable.

To stay on top of it, keep a record of:

• When you bought and sold each asset

• How much you bought and/or sold

• What it was worth in fiat at the time

• Any fees paid along the way.

These details make life way easier when tax season rolls around — or if your accountant gives you that look.

Know your local rules

Crypto laws aren’t one-size-fits-all. Every country has its own stance, and even within the same country, rules can vary depending on how you’re using crypto.

In the US, for example, selling crypto could fall under capital gains tax rules or even money transmission laws, depending on how you’re moving the funds. Other countries might have more lenient — or much stricter — regulations.

So, here’s what to do:

• Look up your local crypto tax laws (even if they seem vague or outdated).

• Stay current — regulations are evolving fast.

• Talk to a pro if you’re unsure. A crypto-savvy accountant or legal adviser can help you avoid nasty surprises.

Even if you’re using non-KYC methods or decentralized tools, tax authorities may still expect a full report. Being proactive about it will save you headaches later — and might even save you money.

Happy cashing out!

On April 3, yields on long-term US government debt fell to their lowest levels in six months as investors reacted to growing concerns over the global trade war and the weakening of the US dollar. The yield on the 10-year Treasury note briefly touched 4.0%, down from 4.4% a week earlier, signaling strong demand from buyers.

At first glance, a higher risk of economic recession may seem negative for Bitcoin (BTC). However, lower returns from fixed-income investments encourage allocations to alternative assets, including cryptocurrencies. Over time, traders are likely to reduce exposure to bonds, particularly if inflation rises. As a result, the path to a Bitcoin all-time high in 2025 remains plausible.

Tariffs create ‘supply shock’ in the US and impact inflation and fixed-income returns

One could argue that the recently announced US import tariffs negatively impact corporate profitability, forcing some companies to deleverage and, in turn, reducing market liquidity. Ultimately, any measure that increases risk aversion tends to have a short-term negative effect on Bitcoin, particularly given its strong correlation with the S&P 500 index.

Axel Merk, chief investment officer and portfolio manager at Merk Investments, said that tariffs create a “supply shock,” meaning the reduced availability of goods and services due to rising prices causes an imbalance relative to demand. This effect is amplified if interest rates are declining, potentially paving the way for inflationary pressure.

Even if one does not view Bitcoin as a hedge against inflation, the appeal of fixed-income investments diminishes significantly in such a scenario. Moreover, if just 5% of the world’s $140 trillion bond market seeks higher returns elsewhere, it could translate into $7 trillion in potential inflows into stocks, commodities, real estate, gold, and Bitcoin.

Weaker US dollar amid gold all-time highs favors alternative assets

Gold surged to a $21 trillion market capitalization as it made consecutive all-time highs, and it still has the potential for significant price upside. Higher prices allow previously unprofitable mining operations to resume and it encourages further investment in exploration, extraction, and refining. As production expands, the supply growth will naturally act as a limiting factor on gold’s long-term bull run.

Regardless of trends in US interest rates, the US dollar has weakened against a basket of foreign currencies, as measured by the DXY Index. On April 3, the index dropped to 102, its lowest level in six months. A decline in confidence in the US dollar, even in relative terms, could encourage other nations to explore alternative stores of value, including Bitcoin.

This transition does not happen overnight, but the trade war could lead to a gradual shift away from the US dollar, particularly among countries that feel pressured by its dominant role. While no one expects a return to the gold standard or Bitcoin to become a major component of national reserves, any movement away from the dollar strengthens Bitcoin’s long-term upside potential and reinforces its position as an alternative asset.

Related: Trump 'Liberation Day' tariffs create chaos in markets, recession concerns

To put things in perspective, Japan, China, Hong Kong, and Singapore collectively hold $2.63 trillion in US Treasuries. If these regions choose to retaliate, bond yields could reverse their trend, increasing the cost of new debt issuance for the US government and further weakening the dollar. In such a scenario, investors would likely avoid adding exposure to stocks, ultimately favoring scarce alternative assets like Bitcoin.

Timing Bitcoin’s market bottom is nearly impossible, but the fact that the $82,000 support level held despite worsening global economic uncertainty is an encouraging sign of its resilience.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Today in crypto, President Donald Trump’s pick for US Securities and Exchange Commission (SEC) chair passed a key committee vote, the US Office of Foreign Assets Control (OFAC) sanctioned eight crypto addresses linked to Russian crypto exchange Garantex and the Yemeni political and military organization the Houthis, and the US House Financial Services Committee voted through a stablecoin bill.

Paul Atkins’ SEC nomination passes committee vote

Paul Atkins is one step closer to securing the top position at the US Securities and Exchange Commission after the Senate Banking Committee voted to advance his nomination. 

In an April 3 banking committee session, lawmakers voted 13 to 11 for Atkins to serve two consecutive terms as a commissioner at the government agency, effectively taking over former Chair Gary Gensler’s term.

Atkins’ nomination is expected to go to a full Senate vote in the near future. 

Before the vote, committee chair Tim Scott said Atkins would bring “much-needed clarity” to the cryptocurrency sector.

Donald Trump selected Atkins to replace Gensler as the SEC head in December, roughly one month after winning the presidential election.

At the time, Trump praised Atkins’ track record as a former SEC commissioner and for his expertise in digital assets.

US sanctions 8 crypto wallets tied to Garantex exchange and Yemeni Houthis

The US Treasury Department sanctioned eight cryptocurrency wallet addresses linked to Russian crypto exchange Garantex and the Yemeni political and military organization the Houthis.

The United States Office of Foreign Assets Control (OFAC) sanctioned eight crypto addresses that data from blockchain forensic firms Chainalysis and TRM Labs had linked to the organizations. Two are deposit addresses at major crypto platforms, while the other six are privately controlled.

The addresses in question reportedly moved nearly $1 billion worth of funds linked to sanctioned entities. Most of the transactions funded Houthi operations in Yemen and the Red Sea region.

US House committee passes stablecoin-regulating STABLE Act

The US House Financial Services Committee passed a Republican-backed stablecoin framework bill with a 32-17 vote on April 2, with six Democrats voting in favor.

The bill, the Stablecoin Transparency and Accountability for a Better Ledger Economy, or STABLE Act, will now head to the House floor for a full vote. It aims to provide rules around payment stablecoins and ensure issuers give information about their business and how they back their tokens.

Last month, the US Senate Banking Committee voted through a similar GOP-backed bill, the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, which lays out oversight and reserve rules for issuers.

Both bills will now wait until debate time on the floor of the House and Senate, respectively, before they head for a floor vote.

Crypto journalist Eleanor Terrett reported on X, citing crypto lobbyists, that there is likely to be “a coordinated push behind the scenes over the next few weeks to get the two bills to mirror each other,” which would avoid the House and Senate having to “negotiate to create a final version of the bill everyone agrees on.”

Solana’s native token, SOL, has dropped by nearly 12.75% in the last 24 hours to a three-week low of $112.50 on April 3.

Key drivers behind SOL’s sharp correction include:

• The latest round of tariffs from the Trump administration and their potential to erase trillions of dollars from the stock market.

• Negative SOL futures basis and funding rates.

• Multiple technical factors.

Let’s examine these catalysts in detail.

Trump tariffs rattle Solana and broader crypto market

Solana’s decline occurred in the wake of US President Donald Trump’s April 2, “Liberation Day” tariffs. The escalation in trade tensions led investors to move away from riskier assets, including cryptocurrencies like SOL, in favor of safer investments.

Related: Trump 'Liberation Day' tariffs create chaos in markets, recession concerns

SOL’s recent price decline is closely tied to fading demand in its futures market, as reflected by a sharp drop in the annualized rolling basis on three-month contracts.

The annualized rolling basis shows how much more (or less) futures contracts are trading compared to the current spot price, expressed as an annual percentage.

A high basis means futures are trading at a significant premium, signaling bullish expectations and strong demand for leveraged long positions. On the other hand, a low or negative basis means futures are trading close to or below the spot price, indicating a lack of speculative interest or growing bearish sentiment.

SOL futures basis peaked in mid-November 2024 at 18% and was below 0% as of April 3, showing that traders are no longer paying a premium for SOL.

Solana’s funding rates turn negative

Solana’s price drop further aligns with its declining funding rates, indicating a weakening bullish momentum in the market.

SOL’s weekly funding rates slipped to -0.0462 on April 3 from 0.14% a day ago, and this negative funding means short traders are paying longs, highlighting the expectation for further downside.

Currently, SOL’s daily chart shows a pattern of bear flag continuation, a process where consecutive bearish structures confirm and drive prices lower.

As of April 3, SOL was trading below its flag pattern’s lower trendline, projecting a price decline to $96.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Cango, a publicly traded Chinese conglomerate, has agreed to sell its legacy China operations to an entity associated with peer Bitmain in a bid to go all-in on Bitcoin (BTC) mining, according to a report by The Miner Mag. 

Cango agreed to sell its legacy Chinese auto financing business to Ursalpha Digital Limited in a $352 million deal, according to the report.

 Additionally, Bitmain is reportedly transferring 32 exahashes per second (EH/s) to Cango. The deal effectively brings Bitmain’s mining assets to the public market, The Miner Mag said.

Exahashes measure a miner’s contribution to the Bitcoin network’s hashrate, the total computing power securing the network.

The Miner Mag said Ursalpha Digital Limited has the same corporate address and founding director as Antalpha, an entity ultimately controlled by the chairman of Bitcoin miner Bitmain. 

Related: Analysts eye Bitcoin miners’ AI, chip sales ahead of Q4 earnings

Trump-family connection

Bitmain has experienced US scrutiny after the country blacklisted its artificial intelligence affiliate Sopghgo, Bloomberg reported. 

According to Bloomberg, Bitmain has a working relationship with American Bitcoin, a Trump-family-affiliated mining entity created in March as part of a deal with Hut 8, a provider of power and computing infrastructure. 

On March 31, Hut 8 bought a majority ownership interest in American Bitcoin (formerly American Data Centers), whose founders include US President Donald Trump’s sons, Donald Trump Jr. and Eric Trump. 

Hut 8 has transferred its Bitcoin mining equipment to American Bitcoin, which is reportedly mulling an initial public offering (IPO), according to Bloomberg. 

The companies said that American Bitcoin will focus on crypto mining, while Hut 8 targets data center infrastructure for applications such as high-performance computing. 

In 2025, Bitcoin mining stocks have struggled amid declining cryptocurrency prices and pressure on business models caused by the Bitcoin network’s April halving, according to a JPMorgan research note shared with Cointelegraph.

Every four years, the amount of BTC mined per “block” — a bundle of transaction data stored on the chain — is cut in half. April’s halving slashed mining rewards from 6.25 BTC to 3.125 BTC per block.

Magazine: Elon Musk’s plan to run government on blockchain faces uphill battle