The cryptocurrency market and U.S. stocks continued their downward trend on Tuesday. By market close, the S&P 500, Dow Jones, and Nasdaq Composite all recorded significant losses, with the Dow dropping nearly 400 points—marking its worst quarterly start since 2020.
Rising borrowing costs have weakened stock market gains, pressuring the S&P 500 as 10-year and 30-year Treasury yields hit their highest levels since early November.
Bitcoin briefly dipped below $65,000 on Tuesday, hitting a low of $64,591.50 before recovering slightly to above $65,000 by the U.S. market close. The broader crypto market fell 3.9% over the past 24 hours, with major assets like Bitcoin (-5.68%), Ethereum (-6.43%), and Dogecoin (-10.33%) leading the decline.
Meme coins plummeted approximately 17% during the same period.
US Government Moves $2 Billion in Bitcoin to Coinbase, Sparking Sell-Off Concerns
Market participants closely monitor U.S. government Bitcoin address activity, as any sales could impact prices. Typically, increased Bitcoin inflows to exchange wallets raise sell pressure and trigger price declines.
Arkham Intelligence data reveals that on April 2, 2024, the U.S. government executed transfers totaling nearly $2 billion in Bitcoin, sending tokens to Coinbase Prime in multiple transactions. The transfer involved 30,174.70 BTC, processed at block height 837,413.
The U.S. Department of Justice has accumulated significant BTC holdings through cases like Silk Road, Bitfinex hack, and James Zhong. Its last confirmed sale occurred in March 2023, when it sold 9,861 BTC (seized from Silk Road) for $216 million.
As of April 2, the U.S. government still holds:
- 215,246 BTC ($14 billion)
- 50,147 ETH ($163 million)
Bitcoin slid further post-announcement, breaching $65,000 before a minor rebound.
Crypto analyst Phyrex commented: "This exchange deposit suggests completed sales. Now we watch交割价格和新持仓者的动向."
Fed Rate Cut Expectations Add Uncertainty
Shifting expectations around the Fed’s pace of rate cuts unsettled traders. CME Group data shows a 40% chance rates will hold until June.
Stronger-than-expected U.S. manufacturing data emerged yesterday, but Cleveland Fed President Loretta Mester maintained her forecast for three 2024 rate cuts—aligning with the Fed’s March projections. Meanwhile, San Francisco Fed President Mary Daly emphasized that three cuts are a "prediction, not a promise."
👉 Stay updated on crypto market trends
Bitcoin Must Hold $65,000 Support
Analyst Rekt Capital noted Bitcoin failed to complete a post-breakout retest as halving approaches, predicting slower price action:
"BTC could technically reclaim ~$69K historic highs before weekly close." He stressed maintaining $65,600 weekly lows to prevent deeper losses.
Coinglass data shows a drop to $65,000 would liquidate $249M+ in long positions across exchanges.
Technical analyst Lockridge Okoth warns:
- Breakdown below 200-day EMA ($65,556) may extend losses to $60,800.
- Holding EMA support could propel BTC toward $69K resistance. Breaking this level may target $73,777 and new highs above $74K.
Nexo’s Andrey Stoychev attributes the pullback to new investors post-ETF approval, anticipating short-term corrections. He cites historical cycles where BTC surged 250% after breaking ATHs, suggesting a $231K target if patterns repeat.
FAQs
Q: Why did Bitcoin drop below $65,000?
A: The decline followed the U.S. government’s $2B BTC transfer to Coinbase and broader market uncertainty around Fed rate cuts.
Q: How much Bitcoin does the U.S. government still hold?
A: As of April 2: 215,246 BTC ($14B) and 50,147 ETH ($163M).
Q: What’s Bitcoin’s critical support level?
A: $65,600 weekly low and 200-day EMA ($65,556) are key. Losing these may push BTC toward $60,800.
👉 Explore secure crypto trading platforms
Q: Could Bitcoin reach $231K this cycle?
A: Historical patterns suggest potential if BTC mirrors 2020’s post-ATH surge, but market conditions vary.
Q: What’s impacting crypto and stock markets?
A: Rising Treasury yields, delayed Fed rate cuts, and risk-off sentiment are primary drivers.
Q: Are meme coins recovering soon?
A: With a 17% 24-hour drop, meme coins face high volatility. Recovery depends on broader market sentiment.