On Tuesday, April 2nd, the cryptocurrency market exhibited a reversal, signaling the start of a bearish trend. Bitcoin (BTC) dropped to the $66,000 level, while Ethereum, the second-largest cryptocurrency by market capitalization, fell below the $3,400 mark.

At the time of writing, the price of Bitcoin had sharply declined by 5.7% to $66,523.13. Trading volume surged by 101.24% over the day, reaching $41.93 billion, with a market capitalization of $1.3 trillion.

The new month has proven challenging for the crypto market, ushering in a downturn in asset prices.

The return of institutional flows failed to sustain further growth potential, despite the absence of fund outflows from the Grayscale Bitcoin Trust (GBTC).

Crypto trader Daan Crypto Trades suggested that the market downturn could be attributed to the Easter holidays.

"Grayscale didn't send out anything significant, just a few dollars in ETH and other coins, which weren't noteworthy amounts," he stated.

Many analysts believe the decline in Bitcoin's value is due to reduced demand for spot exchange-traded funds (ETFs) in the US and lower expectations for an imminent shift in the Federal Reserve's (Fed) policy on rate cuts.