Crypto Market Faces Turmoil as US Stocks Slide
The crypto market is in a rough patch as US equities continue their downward trend. Bitcoin, the leading cryptocurrency, has seen a notable drop from its year-to-date high of $109,300 to a low of $77,396.43 on March 10. Other major altcoins like Ethereum, Ripple, and Cardano are also struggling, with prices falling below $1,900, $2.1, and $0.65, respectively.
Moast altcoins have taken a hit this year, pushing the altcoin season index to 15. The crypto fear and greed index has also dipped to 25, indicating a strong fear sentiment. The total market cap of all cryptocurrencies has decreased by over $1 trillion.
US equities are also under pressure. The S&P 500 index has fallen by nearly 10% from its peak this year, while the tech-heavy Nasdaq 100 index is down by 13%. A drop of over 10% from a local high signals a correction.
Two main factors are driving the US equity downturn. First, the artificial intelligence industry, which previously boosted the market, is showing signs of slowing down. Popular AI stocks like NVIDIA, AMD, and Microsoft have all seen sharp declines. Second, reciprocal tariffs and a potential global trade war are raising recession concerns.
The S&P 500 and Nasdaq 100 have formed a death cross, where the 50-day and 200-day moving averages intersect. This pattern frequently enough signals further declines. The last time the Nasdaq 100 had a death cross was in 2022, leading to a 40% drop.
Historically, the crypto and stock markets move together as risky assets. As the stock market falls, cryptocurrencies tend to follow suit. This year,Bitcoin and altcoins have experienced steeper crashes alongside the stock market downturn.
