Over the weekend, bitcoin BTC $83,706.76 Bitcoin -1.63% Market capitalization $1.66 trillion VOL. 24 hours $3.68 billion dropped below $ 82,000, losing almost $ 8,000 from the week’s high. At the beginning of March, the cryptocurrency was approaching $ 90,000, but is now showing a significant decline. The decline in the digital asset market also affected Ethereum ETH $1,816.73 Bridged Ether (StarkGate) -3.25% Market capitalization $0.16 billion VOL. 24 hours $1.46 billion - the second largest cryptocurrency by capitalization fell below $ 1,800, although a few days ago it exceeded $ 2,000. The overall decline of Ethereum was about 9%.
Investor sentiment has cooled considerably. The Fear and Greed Index, which captures the emotional state of the market, indicates a transition to a bearish phase. The total capitalization of the crypto market fell to $ 2.84 trillion, a slight daily drop of 0.24%, but in the context of the overall trend, the signal is disappointing.
Against this background, the behavior of experienced traders has also changed. Analysts from CryptoQuant report that those who used to actively record profits at local peaks are now choosing a strategy of accumulation and long-term asset retention. This indicates caution in the short term, despite the high level of bitcoin dominance — it has reached 61.2%, which is the highest in the last four years.
The reasons for the correction lie not only in technical factors. General economic tensions also affect the crypto market. In particular, investors are nervously reacting to political signals related to Donald Trump’s initiatives, including his promises of new tariffs. This is also weighing on traditional financial markets, with futures on major US stock indices going down: The Dow Jones lost 199 points, the S&P 500 fell by 0.78%, and the Nasdaq fell by 1.37%.
Technical analysts, including a trader at Rekt Capital, are paying attention to the so-called «CME gaps» in the range of $ 82,700 to $ 84,000. These zones may act as potential support or resistance levels in the near future. The first quarter turned out to be difficult for the crypto market in general: Bitcoin showed the largest quarterly decline since 2018, and Ethereum lost about 45% over the same period.