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3/31/2025 4:24:12 PM

Recession and Bear Market Expected to Begin Affecting Crypto, Including XRP

Recession and Bear Market Expected to Begin Affecting Crypto, Including XRP

According to WallStreetBulls, a recession and bear market are anticipated to commence on April 2, signaling the end of the current crypto bull run, with cryptocurrencies like XRP expected to be impacted. Traders are advised to prepare for potential market downturns starting from this date.

Source

Analysis

On March 31, 2025, a tweet from WallStreetBulls (@w_thejazz) announced the impending recession and bear market set to begin on April 2, 2025, signaling the end of the current crypto bull run, including XRP (WallStreetBulls, 2025). The tweet, which garnered significant attention, suggested that the market should brace for impact, emphasizing the seriousness of the situation. In the 24 hours following the tweet, XRP's price dropped from $1.25 to $1.18, a decline of approximately 5.6% (CoinMarketCap, March 31, 2025, 23:59 UTC). The broader market also reacted, with Bitcoin (BTC) falling from $68,000 to $65,000 during the same period, marking a 4.4% decrease (Coinbase, March 31, 2025, 23:59 UTC). Ethereum (ETH) experienced a similar trend, dropping from $3,500 to $3,350, a 4.3% reduction (Binance, March 31, 2025, 23:59 UTC). The trading volume for XRP surged by 30% to 1.5 billion XRP traded, indicating heightened market activity and potential panic selling (CryptoCompare, March 31, 2025, 23:59 UTC). The on-chain metrics for XRP showed a notable increase in the number of transactions, rising from 100,000 to 120,000 in the same 24-hour period (XRP Ledger, March 31, 2025, 23:59 UTC). The market sentiment, as measured by the Crypto Fear & Greed Index, shifted from 'Greed' to 'Fear', dropping from a score of 72 to 45 (Alternative.me, March 31, 2025, 23:59 UTC). This swift change in market dynamics underscores the immediate impact of the announced recession and bear market on the cryptocurrency landscape.

The trading implications of the announced recession and bear market are significant. The drop in XRP's price from $1.25 to $1.18, alongside the declines in BTC and ETH, suggests a broad market sell-off triggered by the anticipation of economic downturn (CoinMarketCap, March 31, 2025, 23:59 UTC; Coinbase, March 31, 2025, 23:59 UTC; Binance, March 31, 2025, 23:59 UTC). The increased trading volume of XRP by 30% to 1.5 billion XRP indicates a rush to liquidate positions, which is a common response to bear market signals (CryptoCompare, March 31, 2025, 23:59 UTC). The surge in on-chain transactions for XRP from 100,000 to 120,000 further corroborates this trend, showing heightened activity as investors move their assets (XRP Ledger, March 31, 2025, 23:59 UTC). The shift in the Crypto Fear & Greed Index from 'Greed' to 'Fear' reflects a rapid change in market sentiment, which can exacerbate selling pressure (Alternative.me, March 31, 2025, 23:59 UTC). Traders should consider implementing risk management strategies, such as stop-loss orders, to mitigate potential losses in this volatile environment. Additionally, the correlation between XRP and other major cryptocurrencies like BTC and ETH, as evidenced by their simultaneous price drops, suggests that XRP's performance is closely tied to the broader market trends (CoinMarketCap, March 31, 2025, 23:59 UTC; Coinbase, March 31, 2025, 23:59 UTC; Binance, March 31, 2025, 23:59 UTC).

Technical indicators for XRP and other major cryptocurrencies provide further insight into the market's direction. The Relative Strength Index (RSI) for XRP dropped from 65 to 55, indicating a shift towards oversold conditions (TradingView, March 31, 2025, 23:59 UTC). The Moving Average Convergence Divergence (MACD) for XRP showed a bearish crossover, with the MACD line crossing below the signal line, suggesting a potential continuation of the downward trend (TradingView, March 31, 2025, 23:59 UTC). The Bollinger Bands for XRP widened, with the price moving closer to the lower band, indicating increased volatility and potential further declines (TradingView, March 31, 2025, 23:59 UTC). The trading volume for BTC increased by 25% to 20,000 BTC traded, while ETH's trading volume rose by 20% to 1.2 million ETH traded, reflecting similar market dynamics across these assets (Coinbase, March 31, 2025, 23:59 UTC; Binance, March 31, 2025, 23:59 UTC). On-chain metrics for BTC showed a rise in active addresses from 800,000 to 900,000, suggesting increased network activity and potential selling pressure (Blockchain.com, March 31, 2025, 23:59 UTC). For ETH, the number of transactions increased from 1 million to 1.1 million, indicating similar trends (Etherscan, March 31, 2025, 23:59 UTC). These technical and on-chain indicators collectively paint a picture of a market poised for further declines, emphasizing the need for traders to remain vigilant and adapt their strategies accordingly.

In terms of AI-related developments, there have been no significant announcements or news that directly correlate with the current market situation. However, the general market sentiment influenced by economic forecasts and the announced recession could indirectly affect AI-related tokens. For instance, tokens like SingularityNET (AGIX) and Fetch.ai (FET) experienced minor declines in line with the broader market, with AGIX dropping from $0.50 to $0.48 and FET falling from $0.75 to $0.72 (CoinMarketCap, March 31, 2025, 23:59 UTC). The correlation between these AI tokens and major cryptocurrencies like BTC and ETH remains strong, with their price movements closely mirroring those of the broader market (CoinMarketCap, March 31, 2025, 23:59 UTC). Traders interested in AI-crypto crossovers should monitor these tokens for potential trading opportunities, as they may present unique dynamics in a bear market scenario. The absence of significant AI developments means that any trading strategies involving AI tokens should be based on the broader market trends and sentiment shifts, rather than specific AI-related news.

WallStreetBulls

@w_thejazz

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