Altcoins Slide: DOGE, ADA, and XRP Sink 10% as Market Fear Index Hits 17-Month Low

Crypto Markets Plunge as Bitcoin Hits $80K, Fear Index Falls to 17-Month Low

Investors remain on high alert as economic uncertainty and regulatory setbacks weigh on the crypto market, driving sentiment to multi-year lows.

The cryptocurrency market’s sell-off deepened for the second consecutive week, with Bitcoin (BTC) slipping to just above $80,000 late Sunday. This triggered a broader decline across major altcoins and digital assets.

Dogecoin (DOGE) and Cardano (ADA) suffered the steepest losses, tumbling nearly 10% in the past 24 hours. XRP followed closely with a 7% drop, while BNB Chain’s BNB, Ethereum (ETH), and Tron (TRX) saw declines of roughly 5%. BTC itself shed another 4%, continuing its downward trajectory.

As a result, the Crypto Fear and Greed Index plunged to 17, signaling ‘extreme fear’—its lowest reading since mid-2023.

Investor Sentiment Sinks as Uncertainty Rises

The Crypto Fear and Greed Index, which ranges from 0 (extreme fear) to 100 (extreme greed), measures investor emotions based on price trends, market momentum, social media activity, Google search volume, and Bitcoin’s overall dominance. Historically, extreme fear has sometimes preceded a market rebound, while extreme greed has signaled potential corrections.

The current downturn has erased all gains made earlier this month following President Donald Trump’s announcement of a U.S. strategic crypto reserve. The initial optimism saw tokens like XRP, Solana (SOL), and ADA surge by as much as 60% in just a few days.

However, enthusiasm quickly faded when Trump clarified that the reserve would primarily consist of previously seized BTC holdings. Meanwhile, non-BTC crypto assets were merely categorized as a ‘stockpile’ rather than actively managed investments, dampening bullish expectations.

White House Crypto Summit Disappoints Markets

Hopes for meaningful regulatory progress were dashed after the White House Crypto Summit on March 7 failed to deliver bold policy updates. Instead, the summit resulted in a commitment to developing a stablecoin regulatory framework by August and a promise of reduced regulatory scrutiny—neither of which had an immediate impact on the market.

Macroeconomic Uncertainty Adds to Pressure

Global economic tensions have further soured sentiment. The ongoing tariff war initiated by Trump and other world leaders has created turbulence across financial markets. Additionally, the U.S. dollar index (DXY), which measures the dollar’s strength against other currencies, has fallen below 105—its lowest level since November. While a weaker dollar often boosts risk assets, broader market instability has kept crypto investors wary.

“The summit initially generated some optimism,” said Kevin Guo, Director of HashKey Research, in a message to CoinDesk. “But with no major regulatory breakthroughs, crypto continues to follow the negative trend in U.S. equities, especially after February’s job report showed resilience despite government job cuts.”

Federal Reserve Chairman Jerome Powell’s recent statements reaffirmed a cautious approach toward reaching a 2% inflation target, further diminishing hopes for an imminent interest rate cut. Historically, lower interest rates have driven demand for risk assets, including cryptocurrencies.

A Possible Turnaround?

Despite the prevailing bearish sentiment, some investors are betting on a potential market recovery. Bloomberg reports that traders are moving into short-term U.S. Treasuries, anticipating that the Federal Reserve could cut interest rates as early as May to prevent economic slowdown. If rate cuts materialize, they could inject fresh capital into riskier assets like cryptocurrencies, potentially reversing the current downtrend in the coming months.

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