<span style="font-weight: 400">On April 4, Bitcoin (BTC) reached an approximate price of $46,000 before falling back to $38,000. This surprised crypto traders who had grown accustomed to the market's irrational returns two years following the</span><a href="https://www.cnbc.com/2020/03/13/bitcoin-loses-half-of-its-value-in-two-day-plunge.html"> <span style="font-weight: 400">March 2020 crash</span></a><span style="font-weight: 400">. There were signs of recovery in February and March, following the sharp drops in December and January. However, the question is, "Why has the stock market stopped rising? What are its effects on coins and market caps?"</span>

<img class="aligncenter" src="https://nairametrics.com/wp-content/uploads/2022/05/Crypto-66.jpg?w=730" alt="Crypto Market’s Rocky April" width="607" height="388" />
<h2><strong>S&amp;P 500 Consistent Relationship with Other Markets</strong></h2>
<span style="font-weight: 400">The relationship between cryptocurrencies and stocks, particularly Bitcoin and the <a href="https://en.wikipedia.org/wiki/S%26P_500">S&amp;P 500</a>, remains unchanged. Moreover, investors expect it not to change until mid-May. This is when</span><a href="https://www.cnbc.com/2022/05/03/the-fed-is-expected-to-raise-rates-by-a-half-point-investors-wonder-if-it-will-get-more-aggressive.html"> <span style="font-weight: 400">Jerome Powell and the US Federal Reserve</span></a><span style="font-weight: 400"> are expected to announce a 0.5 percent rate hike to combat inflation.</span>

<span style="font-weight: 400">However, this does not imply that the price of Bitcoin will continue to fall. What if cryptocurrency prices continue to move in lockstep with stock prices, rather than the other way around? In this case, many people believe that rate hike fears were likely priced in before the Fed meeting, even though the S&amp;P 500 recently fell.</span>
<h2><strong>Bitcoin Whales Purge, Tether Whales Surge</strong></h2>
<span style="font-weight: 400">To forecast how the price of the entire market will move in the future, the crypto data platform</span><a href="https://santiment.net/"> <span style="font-weight: 400">Santiment</span></a><span style="font-weight: 400"> always looks at the whale tiers of Bitcoin and Tether.</span><a href="https://www.cryptoknowmics.com/news/whale-addresses-holding-cardano-ada-hits-a-new-high"> <span style="font-weight: 400">Whale addresses</span></a><span style="font-weight: 400"> of Bitcoin hold between 100 to 10,000 BTC while that can of Tether holds between 100,000 and 10,000,000 (USDT)</span>

<span style="font-weight: 400">This important group's BTC holdings have fallen by 0.6 percent in the last two months. Meanwhile, the key USDT group has added 1.8 percent more of the market's leading stable coin. Even though large "whale" addresses have sold their BTC, there is evidence that prices rise when more addresses hold between 10,000 and 100,000 BTC. </span>
<h2><strong>Traders are selling short in May</strong></h2>
<span style="font-weight: 400">Exchange funding rates are another indicator of price movement. Prices tend to fall when there are too many bets on price increases, just like in November 2021. But it appears that the opposite is happening right now.</span>

<span style="font-weight: 400">Multiple exchanges have high short funding rates. This means that the crypto markets are currently undergoing fear, uncertainty, and doubt (FUD). When this many BTC and altcoins are shorted at once, there is a great chance that prices will rise. As a result, it will force those who bet against rising crypto prices to sell.</span>
<h2><span style="font-weight: 400">Effects of Crypto's Rocky Market on Coins</span></h2>
<span style="font-weight: 400">The Crypto rocky market has had a negative impact on Bitcoin and some other coins in the crypto market. The value of Bitcoin has seen a series of sudden swings. This makes it harder for investors to make accurate predictions about its value.  </span>
<h2><strong>Effects on the Market Cap</strong></h2>
<span style="font-weight: 400">The rocky market in April had a dampening effect on the cryptocurrency market. These led to a drop in prices and reduced interest in the cryptocurrency system. </span>

<span style="font-weight: 400">This also made a lot of investors let down by the whole idea of investing in cryptocurrency. As a result, the reduced interest in the crypto space will be a drag on the market, thereby shrinking the market capitalization of coins. </span>

Crypto Market’s Rocky April, The Effect on Coins and Market Caps

The rocky market has had a negative impact on Bitcoin and some other coins, with the value of Bitcoin seeing several sudden swings

Oluwademilade Afolabi is a freelance writer and editor passionate about blockchain technology and the health industry. He is a 6th year medical student, and has worked with various companies and blogs since the blockchain revolution began.

Crypto Market’s Rocky April, The Effect on Coins and Market Caps

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