The cryptocurrency market has taken a sharp hit over the past three days, leaving investors searching for answers. The global crypto market cap has dropped to $2.63 trillion, reflecting a 7.89% decline in just 24 hours. Bitcoin, Ethereum, and several altcoins have experienced significant price drops, fueling concerns about the market’s stability.
Bitcoin, the largest cryptocurrency by market capitalization, has fallen to $78,000 for the first time in four months. At the time of writing, Bitcoin is trading at $78,824.78, marking an 8.45% intraday decline and a 19.86% total drop over the past week.
Technical indicators suggest more downward pressure. Analyst Ali Martinez pointed out that the Moving Average Convergence Divergence (MACD) on the weekly chart has triggered a bearish crossover. Historically, this pattern leads to an average 40% correction. If Bitcoin follows this trend, its price could drop to $68,000, intensifying market fears.
Trump’s Tariffs on China and Mexico Shake Market Confidence
Recent policy changes have added to investor uncertainty. On March 4, U.S. President Donald Trump announced a 10% tariff on Chinese goods and reaffirmed the existing 25% tariffs on imports from Mexico and Canada. These trade restrictions have raised concerns about global economic stability, causing investors to pull back from riskier assets like cryptocurrencies.
Trump’s pro-crypto stance has disappointed investors, as policy shifts have not been as aggressive as expected. Political memecoins and other speculative assets tied to his administration have suffered massive losses, worsening the market downturn.
Institutional Investors Withdraw Funds from Bitcoin and Ethereum ETFs
Institutional investors have been offloading their holdings in cryptocurrency exchange-traded funds (ETFs), further exacerbating the decline.
- Bitcoin ETFs recorded a net daily outflow of $275.83 million, reducing total net assets to $94.30 billion.
- Ethereum ETFs saw a net daily outflow of $45.02 million, bringing total net assets down to $8.35 billion.
These massive withdrawals indicate diminishing institutional confidence in crypto, amplifying the bearish sentiment.
Read also: Cardano Price Down 20% – Can $200M Whale Accumulation Spark a Rally?
Crypto Fear and Greed Index Shows Extreme Fear
Market sentiment has turned highly negative. The Crypto Fear and Greed Index dropped from 10 (Extreme Fear) to 16 (Extreme Fear) in the past 24 hours. Last week, the index stood at 55 (Greed) and was as high as 72 (Extreme Greed) a month ago.
The sharp drop in sentiment highlights the growing anxiety among investors, who remain cautious about the market’s next move. The crypto market may continue to be volatile until economic uncertainties ease and institutional interest rebound.
