Crypto Markets Bleed $115B as Ethereum Weakens Against Bitcoin
March 29, 2025 — The cryptocurrency market faced a sharp downturn Friday, with major tokens plunging across the board as macroeconomic pressure weighed heavily on investor sentiment.
Bitcoin (BTC) dropped to $83,800, a 3.8% decline over the past 24 hours, erasing weekly gains. The broader CoinDesk 20 Index sank 5.7%, led by steep losses in altcoins including Avalanche (AVAX), Near Protocol (NEAR), Polygon (POL), and Uniswap (UNI), all down around 10%.
Ethereum (ETH) took a bigger hit, falling more than 6% and reaching its weakest level against BTC since May 2020. Spot ETH ETFs have struggled to attract inflows, unlike Bitcoin ETFs, which have drawn more than $1 billion in the past two weeks, according to Farside Investors.
The crypto slump mirrored a broader selloff in equities. U.S. markets closed lower on disappointing macro data, with the S&P 500 and Nasdaq shedding 2% and 2.8%, respectively. Crypto-exposed equities followed suit: Strategy (MSTR) dropped 10%, while Coinbase (COIN) fell 7.7%.
Economic indicators released Friday stoked fresh fears of stagnation. February’s PCE report showed 2.5% annual inflation, with core inflation at 2.8%, slightly higher than expected. Consumer spending ticked up 0.4%, though inflation-adjusted data pointed to minimal real growth. The Atlanta Fed’s GDPNow tracker revised Q1 U.S. GDP projections to a 2.8% contraction, raising the specter of stagflation.
Investor unease is also rising ahead of the Trump administration’s sweeping tariff plan, set to go into effect April 2. Market participants have dubbed the event “Liberation Day,” though concerns persist over its broader economic consequences.
Market Repositioning or Trend Shift?
Some analysts see the current drop as technical. Bitcoin’s pullback may reflect a return to the $84,000–$85,000 gap left open on the CME futures chart earlier this week—historically a zone BTC revisits, noted CoinDesk’s James Van Straten.
“It’s unclear if this marks a final bottom for 2025,” said Joel Kruger, strategist at LMAX Group. “Still, the broader outlook is buoyed by improving regulatory clarity and increased institutional interest.”
Kruger believes any further dip could find strong support between $70,000 and $75,000.
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