The crypto market has dropped today, March 28, with Bitcoin price dropping to an intra-day low of $85,660. This decline in BTC price has also affected Ethereum, XRP, and Dogecoin. The widespread market crash has been caused by a massive sell-off in the spot market as depicted by data from Bitfinex. Macroeconomic concerns such as Trump’s fresh tariffs and the PCE inflation data are also causing market anxiety.
Why Are BTC, ETH, XRP, and DOGE Dropping Today?
Bitcoin price struggles to defend the support level at $86,000 following a 1.6% dip in 24 hours. At the same time, Ethereum and XRP have fallen by 5% and 4%, respectively. Dogecoin price has experienced the biggest single-day loss of 7% despite analysts sharing a positive DOGE outlook.
One of the reasons why the Bitcoin price is dropping today is an influx of selling activity on the Bitfinex exchange. This selling activity is shown by the spot CVD indicator that points out a large number of sell orders on Bitcoin while buying pressure weakens. The spot CVD has been on a downtrend since early this week, a sign that traders are capitulating.
Ethereum price is also dropping today because of low demand from buyers. One analyst on X noted that selling pressure has been weighing on ETH since December last year. If this continues, Ethereum will continue to drop further and possibly fall below $2,000.
Additionally, the BTC Deribit Skew shows that the market sentiment towards Bitcoin is now bearish. Analyst Nazro has observed an increase in the number of traders that are purchasing put options in the $80,000 to $85,000 price range. When many traders are buying put options instead of call options, it shows that they anticipate the Bitcoin price to continue dropping.
This negative market sentiment adds to the factors that are making the crypto market to drop today.
Other Reasons Why Crypto Prices Are Dropping Today
Besides the current market conditions that are forcing Bitcoin, Ethereum, XRP, and Dogecoin prices down, macroeconomic factors are also fueling the downward trend in the crypto market today.
The auto tariffs recently announced by President Trump will go into effect next week. These tariffs are expected to cause shock across the global car industry. More importantly, these tariffs are weakening the US economic outlook, causing jitters in the crypto market today.
A recent Coingape article noted that economists have warned of a looming recession, which is also affecting Bitcoin price. At the same time, Reuters has stated that the US Congressional Budget Office projects weak economic growth and a spike in unemployment in the coming years.
US PCE inflation data will also be released today, and anything that hints at rising consumer costs will force Bitcoin, Ethereum, XRP, and Dogecoin price down again. Traders will watch out for this data to assess the Fed’s decision on interest rates.
Bitcoin price needs to make a decisive close above $86,000 to avoid a sustained downtrend, while Ethereum needs to hold the crucial $2,000 support level. XRP price can recover if it defends $2 while Dogecoin has already fallen below $0.20, suggesting further headwinds.
Frequently Asked Questions (FAQs)
Bitcoin, Ethereum, XRP, and Dogecoin price is dropping today due to heavy selling on the spot market. Tariff and inflation concerns are also causing a negative market sentiment.
Traders are selling BTC heavily at the current prices due to concerns that the current downtrend will continue.
If today’s PCE data shows cooling inflation, it will increase optimism of interest rate cuts. This will fuel a positive market sentiment.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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