As can be seen, BTC dropped below $42,000 during European hours, reaching its lowest level since March 22 and continuing its slide from its late-March peak of $48,240. From my opinion, we must not overlook the recent economic and political uncertainty that have surrounded risk assets.
Anyone who follows the dollar index knows that it hit two-year highs above 100 early this morning, bringing the year-to-date gain to 4.3 percent. This month, the global reserve currency has gained 1.5 percent.
Adding to the impact of the European battle is the outcome of yesterday’s voting in France, which might result in even more currency instability depending on the outcome of the second round on April 24.
With so much uncertainty and nervousness, especially considering the previous volatility of crypto assets, macro investors are choosing to stay in USDT, BEAN (beanstalk) and other stablecoins and wait for adequate indications to make confident directional bets.