Bitcoin maintained its position above $58,000 on April 4, 2021, closing the day at $58,229 per BTC — just 5.6% below its all-time high of $61,711 set on March 13. Meanwhile, on-chain data revealed a striking trend in the Ethereum ecosystem: the amount of ETH held on cryptocurrency exchanges had fallen to a 19-month low, signaling a fundamental shift in investor behavior.
The cryptocurrency market’s total capitalization stood at approximately $1.96 trillion, with Bitcoin commanding a 54% dominance share. The week’s trading brought a 2.9% gain for BTC and a 3.06% gain for ETH, extending year-to-date returns of 97% and even larger figures for the second-largest cryptocurrency.
TL;DR
- Bitcoin closed April 4 at $58,229, up 97% year-to-date
- ETH on exchanges fell to 14.7 million — a 19-month low per Glassnode
- Ethereum whale addresses were declining, suggesting accumulation over selling
- Bitcoin dominance continued to slide as altcoins posted strong gains
- BNB surged 9.08% to $349, DOT gained 6.09% to $44.24
- PayPal launched “Checkout with Crypto” and Visa announced USDC settlement
Ethereum’s Exchange Drain: 14.7 Million ETH and Falling
Glassnode data reported on April 4, 2021, revealed that only 14.7 million ETH remained on cryptocurrency exchanges — the lowest level in 19 months. This metric is closely watched by analysts because declining exchange balances typically indicate that investors are moving their holdings to cold storage or DeFi protocols rather than preparing to sell.
The trend was reinforced by a simultaneous decline in the number of Ethereum whale addresses. While a reduction in large holders might initially seem bearish, on-chain analysts interpreted the combination — fewer whales plus less ETH on exchanges — as evidence of long-term accumulation. Investors were consolidating holdings into fewer, larger private wallets rather than keeping funds on exchanges where they could be quickly sold.
Altcoin Season Erodes Bitcoin Dominance
While Bitcoin held firm above $58,000, its market dominance was steadily declining as altcoins posted outsized gains. Binance Coin (BNB) surged 9.08% to $349.05, Polkadot (DOT) climbed 6.09% to $44.24, and Cardano (ADA) held at $1.18. The broader altcoin market was experiencing what analysts were calling an “altseason” — a period where alternative cryptocurrencies outperform Bitcoin by significant margins.
Bitcoin’s dominance fell to 54% of the total cryptocurrency market, down from much higher levels earlier in the year. The declining dominance suggested that capital was rotating from Bitcoin into higher-risk, higher-reward alternatives — a pattern that historically occurs during the middle and late stages of crypto bull markets.
Institutional Momentum: JP Morgan and Visa
The institutional embrace of cryptocurrency accelerated during this period. JP Morgan released research suggesting that Bitcoin’s volatility was “peaking and subsiding from its end-February highs,” which the bank argued would “likely help reinvigorate the institutional interest going forward.” The research further noted that institutional adoption had “slowed in Q1 vs the previous quarter” but was poised for a recovery.
JP Morgan’s analysts made a notable declaration about Bitcoin’s evolving role, stating it “will become over time a more important component of investors’ universe and given their preference for ‘digital gold’ over traditional gold.”
Visa’s announcement that it would settle payments using USDC on Ethereum marked a watershed moment for cryptocurrency infrastructure. As the first major payment network to use a stablecoin for settlement, Visa effectively bridged the gap between traditional finance and decentralized blockchain networks. Crypto.com served as the launch partner, with Visa’s Jack Forestell calling it “an extension of what we do every day, securely facilitating payments in all different currencies all across the world.”
PayPal’s Crypto Checkout Goes Live
Building on its earlier decision to allow cryptocurrency purchases, PayPal launched “Checkout with Crypto” on March 30, 2021, enabling users in the United States to pay millions of online merchants using Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. When a user selected crypto payment, PayPal would convert the cryptocurrency to fiat currency in real-time at the point of sale, with no additional transaction fees.
The PayPal and Visa developments together represented a qualitative shift in cryptocurrency utility. What had been primarily a speculative asset class was rapidly gaining transactional infrastructure that connected it to the mainstream payments ecosystem.
The “Kimchi Premium” Returns
On-chain analytics firm CryptoQuant reported that the “Kimchi Premium” — the price gap between Bitcoin on South Korean exchanges and global platforms — had surged to 11%, its highest level of the year. Analyst Joseph Young drew parallels to 2017, when the premium exceeded 20% during Bitcoin’s run to $20,000. The premium suggested that retail demand in South Korea was outpacing the available supply on local exchanges, a historically bullish signal.
However, the Kimchi Premium also raised concerns about potential capital controls and regulatory scrutiny. South Korean financial regulators had been tightening oversight of cryptocurrency markets, and a large premium could attract arbitrage-driven capital flows that authorities might view unfavorably.
DeFi Setback: Force DAO Hack
The decentralized finance sector experienced a setback on April 4 when Force DAO, a decentralized autonomous organization, was exploited for approximately 183 ETH (worth around $367,000 at the time). The exploit drained and liquidated FORCE tokens, causing the governance token to plunge 95%. The incident served as a reminder that despite the sector’s explosive growth, smart contract vulnerabilities remained a persistent risk.
Why This Matters
April 4, 2021, captured the cryptocurrency market at a pivotal moment. Bitcoin was consolidating near its all-time high, institutional infrastructure was rapidly maturing (Visa, PayPal, JP Morgan), and on-chain data showed investors were accumulating rather than distributing. The declining ETH exchange reserves in particular would prove prescient — Ethereum would go on a massive rally in the months that followed. However, the altcoin euphoria, the return of the Kimchi Premium, and DeFi hacks also signaled the kind of market excesses that often precede significant corrections. History would show that the market was approaching a peak that would not be reclaimed for nearly two years.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research before making any investment decisions.
14.7M ETH on exchanges was the lowest in 19 months per Glassnode. That was the accumulation signal of the cycle.
BNB surging 9% to $349 while DOT gained 6% to $44. Altseason was raging while BTC dominance slid.
paypal launching checkout with crypto + visa settling in USDC. april 2021 was when crypto infrastructure went mainstream