Bitcoin and other leading altcoins are at risk of price losses as American stocks decline. Major indices like the S&P 500 and Nasdaq 100 also show signs of weakening.
Current Crypto Situation
Bitcoin (BTC) has dropped from the year-to-date high of $109,300 to a 2025 low of $77,396.43 on March 10. Ethereum (ETH) plunged below $1,900, while Ripple (XRP) and Cardano (ADA) also saw dips, reaching $2.1 and $0.65, respectively. Most altcoins have been hit this year, with the altcoin season index moving to 15, and the fear and greed index dropping to the fear zone at 25. The market cap of all coins has decreased by over $1 trillion.
U.S. Stock Market Decline
The crypto market and its top players like BTC, XRP, ETH, and ADA may face a deeper dive now as U.S. equities sell-off. Blue-chip stocks like the S&P 500 have dropped nearly 10% from their peak this year, while the Nasdaq 100 has decreased by 13%. A decline of over 10% from a local top highlights that the asset has entered a correction phase. Two main reasons for the drop include signs of slowing in the AI industry and growing fears of a global trade war potentially leading the U.S. to a recession.
S&P 500 and Nasdaq 100 Death Cross
There is a risk that the S&P 500 and Nasdaq 100 indices will experience more downside in upcoming weeks due to forming a 'death cross,' when the 50-day and 200-day moving averages cross. The last occurrence of the Nasdaq 100 death cross in 2022 resulted in a nearly 40% drop that year. Historically, crypto and stock markets are highly correlated because both are considered risky assets. For instance, as the stock market fell this year, Bitcoin and most altcoins experienced deeper declines.
The escalating situation in the U.S. stock market may further impact investor sentiment towards cryptocurrencies, potentially continuing their downtrend. Continuous changes in economic and political conditions make the market highly volatile and risky for investors.
