Why is Crypto Crashing? Ethereum Price Hits 4-Year Low Against BTC
Crypto Apocalypse: The Sky is Falling! 🌪️
Oh, the humanity! 🤯 The crypto market has taken a nosedive, wiping out all the gains from earlier this week. Bitcoin, the mighty king of cryptos, has plummeted to $83,800, a whopping 3.8% decline in just 24 hours! 📉 The market has shed a staggering $115 billion in value, leaving investors wondering if they’ll ever see those sweet, sweet gains again. 😱
Ethereum, the second-largest crypto by market cap, has also struggled, dropping over 6% and hitting its weakest price against Bitcoin since May 2020. It’s like the crypto world is a big, messy divorce, and Ethereum is the poor, neglected spouse. 😔
The U.S. Economy is a Mess, and Crypto is Suffering
The downturn isn’t just limited to digital assets, folks! 🤯 The broader U.S. stock market has also taken a hit, with the S&P 500 falling 2% and the Nasdaq dropping 2.8%. Crypto-related stocks are suffering even more, with MicroStrategy (MSTR) losing 10% and Coinbase (COIN) falling 7.7%. It’s like the whole world is one big, sad, crypto-themed piñata. 🎂
The February inflation report showed a 2.5% year-over-year rise in the price index, with core inflation at 2.8%, slightly above expectations. Consumer spending only grew by 0.4%, with adjusted figures indicating weak economic growth. The Federal Reserve’s GDPNow model now predicts the U.S. economy could shrink by 2.8% in the Q1, raising fears of stagflation. Plus, new U.S. tariffs set to take effect on April 2 have added to investor concerns. It’s like the whole world is one big, messy, economic disaster movie. 🎥
Was This Bitcoin Price Crash Expected?
Bitcoin’s drop to $84,000 was anticipated due to the CME futures gap from earlier this week. Historically, BTC tends to revisit these gaps, and this pullback was likely. However, with Bitcoin closely following the Nasdaq’s movements, a continued downturn in U.S. stocks could lead to further losses in crypto. It’s like the crypto world is a big, sad, game of follow-the-leader. 👦
But don’t worry, folks! 🙅♂️ Some experts see long-term positives. Joel Kruger, a strategist at LMAX Group, pointed out that crypto adoption is growing, with major financial institutions expanding their involvement. While more short-term dips could occur, he expects strong support around the $70,000–$75,000 range, making a potential recovery later this year more likely. It’s like the crypto world is a big, messy, rollercoaster ride. 🎠
On the Downside…
Crypto analyst Michaël van de Poppe warns that Bitcoin is losing momentum, with key liquidity levels below $84K at risk. If BTC breaks this support, further declines could follow. He suggests another week of drops might be on the way before a potential rebound in Q2. It’s like the crypto world is a big, sad, countdown to disaster. ⏰
What crypto market is down today?
Weak U.S. economic data, rising inflation, and new tariffs triggered a broader selloff across both crypto and stock markets. It’s like the whole world is one big, messy, economic disaster movie. 🎥
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2025-03-29 07:52