Bitcoin, Ethereum And XRP Are In Decline: What Do On-chain Data Say?

The storm is brewing in the crypto market. This Saturday, the charts show a worrying red: bitcoin plunges below $84,000, Ethereum wavers around $1,880, and XRP collapses by 5%. A brutal correction, but not entirely unpredictable. Behind these figures lie complex dynamics, where on-chain data and macroeconomic factors intertwine. Decoding.

Bitcoin at the forefront: the naked truth of on-chain data

The on-chain indicators don’t lie: demand for bitcoin is eroding. Purchase volumes have been declining since December 2023, but the drop is accelerating since mid-March.

The American spot ETFs, which were drivers earlier this year, are seeing their inflows dwindle. Worse: institutional investors seem to be hesitating. A caution that contrasts with the optimism of previous months.

Ethereum and XRP are facing a bearish contagion. ETFs on ether are recording record outflows—over $400 million in March—a worrying signal for the altcoin market.

At the same time, XRP “whales” are ramping up their selling, fueling distrust. Result: decreasing liquidity, widening spreads, and heightened volatility.

In the face of uncertainty, large portfolios are migrating. Data reveals an increase in transfers to digital gold (tokenized) and stablecoins.

A defensive strategy that deprives the market of fresh capital. Reserves of USDT and USDC are swelling, while bitcoin loses its status as a temporary safe haven. A paradox, given that geopolitical tensions could have favored it.

2025 at the crossroads: V-shaped recovery or new storm?

April 2 is approaching, and with it, the implementation of new U.S. tariffs. A sword of Damocles for cryptos.

Investors fear a global economic slowdown, likely to reduce appetite for risky assets. In this context, bitcoin becomes a barometer unwittingly: each movement reflects a battle between fears and opportunities.

Experts are divided. For some, this correction is a healthy purge, a prelude to a V-shaped recovery by summer. Others see it as the start of a prolonged crypto winter, fueled by unpredictable regulations and stubborn inflation. One thing is certain: technical indicators (like bitcoin’s RSI) signal an oversold market. A technical rebound is plausible, but fragile.

In the face of this uncertainty, advice diverges. “Stay liquid,” suggests Marc Frison, analyst at ChainMetrics. “Capital will return, but timing is key.” Others bet on DCA (dollar-cost averaging), considered less risky. Finally, seasoned traders exploit short-term futures, taking advantage of volatility. In any case, blockchain innovation continues. In France, the Minister of Digital opens the way for Bitcoin mining.