Cryptocurrency prices have experienced a sharp decline over the last few hours, with Bitcoin (BTC) now down around 3% over the last 24 hours. Major altcoins, including XRP, BNB, and SOL, are witnessing similar downtrends, seeing losses between 4% and 5% during the same period.
The broader cryptocurrency market, as represented by the CoinDesk 20 Index (CD20), has lost around 3.3% of its value in this timeframe. Consequently, BTC’s performance has dropped 1.7% for the week, while the CD20 index has fallen nearly 5%.
Recent trading activity reveals that over the last 24 hours, more than $300 million worth of long positions were liquidated on centralized cryptocurrency exchanges, alongside $38.8 million worth of shorts, as reported by CoinGlass.
This decline appears to be part of a broader de-risking move among traders, spurred by concerns surrounding upcoming reciprocal tariffs imposed by President Donald Trump, set to take effect on April 2. The situation intensified following the release of core Personal Consumption Expenditures (PCE) data, which came in hotter than anticipated on Friday.
This week, additionally, consumer confidence data dipped more than expected, with the index for future expectations reaching a 12-year low, clearly indicating economic uncertainty that is often associated with an impending recession.
These converging factors have driven investors to reduce their exposure to risk assets, triggering a significant flight to safety. According to CoinDesk Data’s latest stablecoin report, gold-backed cryptocurrencies have emerged as a key beneficiary of this risk-off sentiment, boasting a market capitalization that climbed above $1.4 billion in March.
Interestingly, gold-backed cryptocurrencies are counteracting the prevailing bearish trend in the market. While the CD20 index has decreased over 3% in the last 24 hours, tokens such as PAXG and XAUT have seen gains of 0.7%, reaching prices exceeding $3,100. In fact, these tokens have appreciated more than 18% year-to-date, in stark contrast to BTC, which is down 12.5%, and the CD20 index, which has plummeted by 28% so far this year.
