Bitcoin Drops Below $84K Amid $115B Sell-Off, Crypto Market Faces Turmoil

29.03.2025 30 times read 0 Comments

Bitcoin Plunges Below $84K Amid $115 Billion Sell-Off

Bitcoin experienced a sharp decline, falling to $83,800 after a $115 billion sell-off wiped out weekly gains. The CoinDesk 20 Index also dropped by 5.7%, with cryptocurrencies like Avalanche (AVAX), Polygon (POL), Near (NEAR), and Uniswap (UNI) suffering nearly 10% losses. Ethereum (ETH) declined over 6%, reaching its weakest price against Bitcoin since May 2020. This downturn coincided with a sell-off in U.S. stocks, as the S&P 500 and Nasdaq fell by 2% and 2.8%, respectively.

Macroeconomic concerns, including a 2.5% year-over-year increase in the February PCE inflation report and a projected 2.8% contraction in U.S. GDP for Q1, added to market pressures. Analysts suggest Bitcoin's drop may have been influenced by filling a CME futures gap between $84,000 and $85,000. Despite the bearish trend, some experts see strong support for Bitcoin in the $70,000-$75,000 range.

"Any additional setbacks that we might see should be exceptionally well supported into the $70-75k area," said Joel Kruger, market strategist at LMAX Group.

Key Takeaways:

  • Bitcoin fell to $83,800, erasing weekly gains.
  • Total crypto market value dropped by $115 billion.
  • Macroeconomic concerns and CME gap-filling contributed to the decline.

Source: CoinDesk

Bitcoin and Ethereum Face $14 Billion Options Expiry

Over $14 billion worth of Bitcoin and Ethereum options expired recently, potentially causing significant market volatility. According to Greeks.live, 139,000 Bitcoin options worth $12.1 billion and 301,000 Ethereum options worth $2.13 billion expired. The "max pain" points for Bitcoin and Ethereum were $85,000 and $2,400, respectively, influencing price movements.

Market makers often drive asset prices toward these max pain points during options expirations. Bitcoin's price dropped by 3% to $85,000, while Ethereum faced additional selling pressure. External factors, such as uncertainty over U.S. tariffs, further complicated market dynamics. Analysts warn of increased selling pressure in the coming months, potentially leading to a challenging environment for investors.

Key Takeaways:

  • 139,000 Bitcoin options and 301,000 Ethereum options expired.
  • Max pain points were $85,000 for Bitcoin and $2,400 for Ethereum.
  • Market volatility expected to persist due to external pressures.

Source: Mitrade

Shares of crypto-focused companies like MicroStrategy (MSTR) and Coinbase (COIN) fell sharply as Bitcoin dropped to $83,700. MicroStrategy, the largest corporate Bitcoin holder, saw its stock decline by 10%, while Coinbase fell by 7.7%. The broader market also suffered, with the S&P 500 and Nasdaq down 2% and 2.8%, respectively.

Economic concerns, including inflation and weak consumer sentiment, contributed to the sell-off. Bitcoin's price, which had surged following Donald Trump's reelection, has faced recent declines amid uncertainty over new tariffs. Analysts note that crypto-related stocks often mirror Bitcoin's price movements, amplifying market volatility.

Key Takeaways:

  • MicroStrategy and Coinbase stocks fell by 10% and 7.7%, respectively.
  • Bitcoin's price dropped to $83,700 amid broader market concerns.
  • Economic uncertainty and tariff fears influenced market sentiment.

Source: Investopedia

Ethereum Hits 300-Week Moving Average

Ethereum's price fell below $2,000, touching the 300-week moving average for only the second time in its history. The first instance occurred in June 2022, marking the start of a 140% recovery over eight weeks. Analysts suggest this technical level could signal a potential rebound, with price targets between $2,900 and $3,200.

However, bearish sentiment persists, and Ethereum's price remains under pressure. A close below the 3M Bollinger bands, currently around $2,000, could lead to further declines. At the time of writing, Ethereum is trading at $1,907, down 5.82% in the past 24 hours.

Key Takeaways:

  • Ethereum touched the 300-week moving average, a key support level.
  • Potential rebound targets range from $2,900 to $3,200.
  • Bearish sentiment and technical risks could hinder recovery.

Source: TradingView

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