The crypto market has dropped today, March 28, with Bitcoin price dropping below $86,000. This decline in BTC price has also affected Ethereum, XRP, and Dogecoin. This 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 is 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.
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