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Bears Gone Wild: Why is Crypto Crashing This Week?

  • Cryptocurrency market capitalization has dropped from $3.15 trillion to $2.14 trillion since March 2, erasing $1.01 trillion in value.
  • Bitcoin fell below $80,000, Ethereum erased post-election rally gains, and most cryptocurrencies saw 10%–25% losses over 30 days.
  • Tariffs, recession fears, and the Federal Reserve’s likely decision to maintain interest rates at 4.25%–4.50% are adding bearish pressure to the already volatile crypto market.
  • The downturn in the crypto market can be attributed to factors such as U.S. politics, including the trade war and uncertainty about interest rate cuts.

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