According to Coinglass data, approximately 70,000 cryptocurrency investors were liquidated in the past 48 hours, losing about 200 million dollars. This cross-market chain reaction not only triggered widespread panic but also exposed the fragility of the current economic environment. This article will combine the views of several authoritative institutions to analyze the reasons for this sharp decline in depth and discuss the key events investors should pay attention to this week and their potential impacts.
The plunge in U.S. stocks began on March 28, 'Black Friday'. According to Investopedia, on that day the S&P 500 index fell by 112.37 points to 5,580.94 points, the Nasdaq index dropped by 481.04 points to 17,322.99 points, and the Dow Jones Industrial Average fell by 715.80 points to 41,583.90 points. Tech stocks led the decline, with the market capitalization of seven major tech giants (including Apple, Microsoft, Amazon, etc.) evaporating by about 505 billion dollars, and the Philadelphia Semiconductor Index declining by 2.95%. This marked the largest single-day drop since the U.S. stock market crash on March 10, indicating a severe adjustment at the end of the first quarter of 2025.
The cryptocurrency market was under pressure immediately afterward. Bitcoin fell from 84,000 dollars on the afternoon of March 29 to 81,644 dollars within 8 hours, a decline of over 3%. It then rebounded to 83,536 dollars at 18:00 on March 30, but failed to maintain the upward trend, dropping to 81,565 dollars by 6:00 on March 31. Ethereum fell to 1,767 dollars, and Solana dropped to 122.68 dollars. According to The Block data, the total market capitalization of cryptocurrencies fell from a peak of 3.9 trillion dollars to 2.9 trillion dollars, a drop of 25%. Trading volume shrank from 126 billion dollars after the November 5 election to 35 billion dollars, a decrease of about 70%.
The synchronized decline of U.S. stocks and the crypto market reflects an increased risk-averse sentiment among investors. Galaxy Research pointed out that Bitcoin is clearly correlated with tech stocks; during this decline, crypto-related stocks such as MicroStrategy (MSTR) plummeted by 10% on Friday, and Coinbase Global (COIN) fell by over 6%, indicating that panic sentiment spread rapidly. InvestingHaven analyst Taki Tsaklanos believes that Bitcoin's short-term support level is at 77,000 dollars, and if it fails to hold, it might trigger larger-scale liquidations.
However, many altcoins have been quietly 'rising' recently. Is it the arrival of the 'altcoin season'? Another wave of 'opportunity'. Every day, I pay attention to some potential coins in advance! Feel free to consult!
