Cryptocurrency prices have plummeted over the past few hours, with Bitcoin (BTC) down around 3% in the last 24 hours. Major altcoins, including $XRP, $BNB, and $SOL, have also suffered losses of 4-5% during the same period. The broader crypto market, as represented by the CoinDesk 20 Index (CD20), has lost approximately 3.3% of its value.
Market Sentiment Shifts to Risk-Off
The sharp decline has brought BTC's weekly performance down to -1.7%, while the CD20 index has lost nearly 5%. Over $300 million worth of long positions were liquidated on centralized exchanges in the last 24 hours, while $38.8 million worth of shorts were also liquidated. This move appears to be part of a broader derisking effort among traders, driven by concerns over the macroeconomic outlook.
Economic Data Sparks Concerns
The decline accelerated after the release of hotter-than-expected core Personal Consumption Expenditures (PCE) data on Friday. This follows a week of disappointing consumer confidence data and a 12-year low in future expectations. As a result, investors are reducing their exposure to risk assets and seeking safer alternatives.
Safe-Haven Assets Benefit from Risk-Off Move
Gold-backed cryptocurrencies have seen a surge in market capitalization, climbing above $1.4 billion in March. Tokens like PAXG and XAUT have bucked the bearish trend, rising 0.7% to over $3,100 in the last 24 hours. Year-to-date, these tokens have gained over 18%, outperforming BTC and the CD20 index.