Common reasons why the crypto market is dropping
Macroeconomic uncertainty:
Factors such as monetary policies (interest rate hikes), inflation, or trade tensions affect investor confidence. For example, if in March 2025 there are news about Trump tariffs or Federal Reserve decisions, investors might sell risky assets like cryptos to seek safe havens (gold, bonds).
Institutional mass selling:
Large players (like BlackRock or MicroStrategy) selling significant amounts of Bitcoin or other cryptos can trigger declines. On X, some users have speculated about sales of +3000 BTC by BlackRock in March, although this is unconfirmed and could be a 'bear trap'.
Regulation and negative news:
Announcements of strict regulations or events like hacks (for example, the alleged hack of Bybit for $1.46B mentioned on X) scare investors, causing quick sales. Uncertainty about crypto policies in the U.S., such as a 'Bitcoin reserve' that does not meet expectations, can also influence the market.
Correction after euphoria:
If the market rose significantly before (Bitcoin surpassed $100,000 in 2024 according to sources), a drop may be a natural correction. Investors take profits, and sentiment shifts from 'greed' to 'fear', as seen in the Crypto Fear & Greed Index dropping to 10 in March (according to posts on X).
Global geopolitical or economic tension:
Conflicts, such as a trade war or issues with the yen (due to decisions by the Bank of Japan), affect financial markets, including cryptos. In 2025, Trump's tariffs on Mexico, Canada, and China have been pointed out as a pressure factor.
Technical volatility:
In short-term charts (like 15 minutes, which you mentioned earlier), breakouts of key supports or bearish patterns (like a 'descending triangle') can accelerate declines. If the volume decreases or there are liquidations of long positions, the effect is amplified.
Context for March 2025
Based on recent information:
Sources like Cointelegraph and Reuters indicate that in early March, the market lost value ($99B in one day according to BeInCrypto) due to global tensions and Trump tariffs. Bitcoin fell to levels like $87,000 or less, and altcoins like Ethereum and Solana also suffered.
The sentiment on X reflects extreme fear (Fear & Greed Index at 10 on March 10), suggesting selling panic. Some analysts believe this is temporary and that events like a 'Crypto Summit' at the White House could reverse it.
Arthur Hayes (former CEO of BitMEX) predicted a peak in Q1 2025 followed by a correction in April due to liquidity issues and taxes in the U.S., which could be influencing the market now.
Why today?
Without exact data for the day, a reasonable hypothesis is that we are seeing a combination of:
Domino effect from previous days: If Bitcoin has dropped for five sessions (as mentioned in a post on X), the bearish momentum continues.
Fresh news: There could be a specific event today (check X or CoinMarketCap to confirm), such as an institutional sale, a comment from Trump, or economic data (the CPI was released today, March 12, and may have disappointed).
Market psychology: In short timeframes like 15 minutes, fear spreads quickly among retail traders.
What to do?
To confirm the exact reason, I suggest:
Look at a 15-minute chart on TradingView: Did Bitcoin break a support (like $85,000)? Is the RSI oversold?
Search for today's news on X or portals like Cointelegraph: Was there a regulatory announcement or a whale movement?
Check the volume: If it's high, the drop has strength; if it's low, it could be a temporary shakeout.
