The cryptocurrency market has experienced another downturn, with Bitcoin (BTC) dropping below $83K and the total market capitalization of digital assets shrinking to $2.69 trillion. Over the past week, BTC has lost more than 9.96%, and in the last 24 hours, it has fallen another 4.11%, currently trading at $82K.
Alongside Bitcoin’s decline, other major cryptocurrencies have also suffered losses:
- Ethereum (ETH) – $2,066 (-5,11%)
- Solana (SOL) – $127.38 (-7,81%)
- XRP – $2.17 (-6,01%)
- Cardano (ADA) – $0.73 (-8,63%)
- Dogecoin (DOGE) – $0.173 (-8,96%)
Despite Bitcoin's weak performance, some altcoins have shown strong gains. According to CoinMarketCap, only 12 out of the top 100 cryptocurrencies by market cap have outperformed BTC in the last 90 days. These include:
- BERA (+493%)
- DEXE (+79%)
- IP (+77%)
- BGB (+72%)
- TRUMP (+70%)
- GT (+65%)
According to Coinglass, traders liquidated $618.16 million in positions over the past 24 hours, with $526.38 million coming from long positions. Bitcoin alone accounted for $249.66 million in liquidations.
Meanwhile, the crypto Fear & Greed Index has dropped to 20, indicating extreme greed.
Reasons Behind the Crypto Crash
The market crash coincided with rising economic tensions in the U.S.. In an interview with Fox News, President Donald Trump cautiously addressed the risk of a 2025 recession, stating that the country is undergoing a "transition period." He emphasized that his policies focus on "bringing wealth back to America" but acknowledged short-term economic difficulties.
Meanwhile, Commerce Secretary Howard Lutnick was more resolute, insisting that "there will be no recession." However, experts remain concerned about the impact of new U.S. trade tariffs, which have added uncertainty to global markets.
U.S.-China Trade War Intensifies
The deterioration of U.S.-China trade relations has further pressured financial markets. In response to recent Washington-imposed measures, Beijing is preparing to introduce countertariffs on American agricultural products, which could further destabilize global trade.
Federal Reserve and Macroeconomic Factors
Beyond trade tensions, investors are closely monitoring the Federal Reserve (Fed). Friday’s Non-Farm Payrolls (NFP) report hinted at potential monetary policy tightening. Fed Chair Jerome Powell stated that the central bank will be cautious with interest rates, assessing the impact of new economic conditions.
Key macroeconomic reports scheduled for next week:
- Consumer Price Index (CPI) – March 12
- Producer Price Index (PPI) – March 13
Markets are awaiting signals about potential Fed policy changes, which could influence further market movements.
Bitcoin Reserve Fails to Impress Investors
Despite high expectations surrounding the creation of a U.S. Strategic Bitcoin Reserve, the market’s actual reaction has been negative. After an initial surge following the announcement, crypto prices quickly dropped when investors realized that the U.S. would not be buying BTC but instead using confiscated assets to fill the reserve.
What’s Next
Analysts are divided on what happens next: some see the current dip as a buying opportunity, while others warn of further declines.
Arthur Hayes, founder of BitMEX, has warned that Bitcoin could fall further to $78K. He noted that BTC options are concentrated between $70K and $75K, which could increase volatility.
Key Factors That Could Influence the Market:
- Declining inflation and possible Fed policy easing
- Clearer regulatory frameworks for crypto in the U.S.
- Bitcoin rallying above $95K, which could restore investor confidence
For now, the market remains under pressure, and the recovery of cryptocurrencies will depend on macroeconomic stability and regulatory decisions.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.
