Highlights
- Bitcoin, Ethereum, XRP and Dogecoin prices are dropping today amid heavy selling in the spot market.
- The BTC Deribit Skew also shows many traders are buying put options as they anticipate more price declines.
- Macroeconomic concerns such as Trump tariffs and inflation data release are also keeping crypto investors on edge.
Crypto prices are down today, March 28, with Bitcoin falling below $85,000. The declining BTC price has also caused Ethereum, XRP, and Dogecoin to trend lower amid a massive selloff from spot traders. Moreover, concerns about Trump tariffs and today’s inflation data release are contributing to the heightened market anxiety.
Why Are BTC, ETH, XRP, and DOGE Dropping Today?
Bitcoin price struggles to defend the support level at $85,000 following a 2.4% dip in 24 hours. At the same time, Ethereum and XRP have fallen by 6%, while 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 has also dropped below $2,000 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)
1. Why is Bitcoin, Ethereum, XRP and Dogecoin price dropping today?
2. Why are traders heavily selling Bitcoin at the current prices?
3. Can the crypto market recover after today’s PCE inflation data?
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