Why Crypto Market is Down Today: Crypto Crash Reasons and Recovery

The crypto market is experiencing a significant downturn, leaving investors concerned about the future. The global crypto market cap currently stands at $2.71 trillion, reflecting a 3.37% decline over the last day. Despite the drop, the total crypto market volume surged 123.96%, reaching $113.82 billion in the past 24 hours.

Bitcoin's dominance has also decreased slightly to 60.30% , indicating a broader pullback in the market. With the growing uncertainty, many are asking: Why is crypto crashing today?

Why Is Crypto Down Today? Key Reasons Behind the Crash

Bybit CEO on Pi Coin and Market Sentiment: One major factor contributing to the crypto decline is the crash of Pi Coin, which plummeted 7.25% in the last 24 hours and recorded a 15.12% drop over the past week. Pi Coin is currently trading at $1.42 with a market cap of $10.28 billion.

A shocking statement from Bybit CEO Ben Zhou sparked the decline, as he compared Pi Network to a Ponzi scheme and labeled it "more dangerous than meme coins." Following his remarks, uncertainty around Pi Coin Binance listing has increased, raising concerns among traders.

Bloomberg Analysts’ Bitcoin Price Prediction : Another critical reason why crypto market is down today is the bearish outlook on Bitcoin. Bloomberg’s senior commodity strategist Mike McGlone warned that Bitcoin could fall to $70,000 due to market fear. Bitcoin price currently stands at $82,029 , having dropped 3.46% intraday , with a market cap of $1.62 trillion and 24-hour trading volume of $44.07 billion .

Source: CoinMarketCap

McGlone highlighted Bitcoin’s underperformance against gold , with the BTC-to-gold ratio declining from 28X to 21X . Additionally, anti-crypto analyst Peter Schiff predicted that the current correction may persist for the rest of the decade.

Next FOMC Meeting and US CPI Data Impact: The next FOMC meeting is set for March 18-19, and it will play a crucial role in determining market movements. According to traders, the probability of a rate cut remains low, with 97% expecting no change and only 3% predicting a rate cut.

The US CPI data for February , scheduled for release on March 12 , is also a key factor. Analysts expect a 0.3% rise in core inflation, which could influence the Federal Reserve’s stance. If inflation remains high, it may discourage investors, potentially leading to further declines in crypto prices.

Fear and Greed Index Crypto: A Shift to Extreme Fear

Investor sentiment has shifted significantly, as reflected in the Fear and Greed Index Crypto , which currently sits at Extreme Fear (20) . This marks a steep decline from Fear (27) yesterday , Fear (33) last week , and Fear (44) last month .

A fear-driven market often indicates that investors are overly cautious. Historically, extreme fear has sometimes provided a buying opportunity for long-term investors, but uncertainty remains high.

Will Crypto Recover? What Lies Ahead

Despite the current crash, analysts suggest that the market could rebound if key support levels hold and macro conditions improve .

Ali Prediction: Bitcoin’s Road to $128K?

Crypto analyst Ali predicts that if Bitcoin reclaims $84,000 as support , it could pave the way for a rally towards $128,000 .

Source: X

The Cumulative Value Days Destroyed (CVDD) metric indicates that Bitcoin’s price could range between $86,147K (min) and $86,467K (max) , setting the stage for a potential uptrend.

Impact of FOMC Meeting on Recovery

The FOMC meeting outcome will be crucial in determining whether the crypto market rebounds . If the Federal Reserve cuts interest rates , it could boost investor confidence, leading to increased trading activity. However, if rates remain unchanged, market volatility may persist.

Conclusion

The crypto crash today is driven by multiple factors, including Bybit CEO on Pi Coin , Bitcoin’s price prediction by Bloomberg analysts , and uncertainty surrounding the upcoming FOMC meeting and US CPI data . While fear dominates the market , some analysts remain optimistic about a recovery if Bitcoin reclaims key support levels.