Why Is Crypto Crashing Today? Latest News & Recovery Outlook

Table Of Contents

Crypto Market Crash: What’s Happening Today?
Why Is Crypto Down Today? Key Reasons Behind the Crash
Market Sentiment: Extreme Fear Takes Over
Will Crypto Recover? What Analysts Predict Next
Final Thoughts: Is This a Temporary Dip or a Longer Downtrend?

Crypto Market Crash: What’s Happening Today?

The crypto market is facing a sharp downturn, causing concern among investors and traders worldwide. The global crypto market cap has dropped to $2.71 trillion, reflecting a 3.37% decline in just 24 hours. However, trading activity has surged, with crypto market volume rising by 123.96% to $113.82 billion in the same period.

Bitcoin’s market dominance has slightly fallen to 60.30%, signaling a broader pullback across major altcoins. Naturally, this has sparked one major question — why is the crypto market down today, and what lies ahead?

Why Is Crypto Down Today? Key Reasons Behind the Crash

1. Pi Coin Crash and Bybit CEO’s Remarks

A major contributor to today’s crypto sell-off is the decline in Pi Coin, which has dropped 7.25% in 24 hours and 15.12% over the past week. It is currently trading at $1.42 with a market cap of $10.28 billion.

The crash followed strong comments from Bybit CEO Ben Zhou, who described Pi Network as a Ponzi scheme and claimed it was “more dangerous than meme coins.” His remarks sparked concern, especially with growing speculation over a potential Binance listing for Pi Coin, intensifying market anxiety.

2. Bitcoin Price Predictions by Bloomberg Analysts

Another key factor in today’s market downturn is the bearish outlook on Bitcoin. Mike McGlone, Bloomberg’s senior commodity strategist, warned that Bitcoin may drop to $70,000 amid rising market fear. At the time of writing, Bitcoin is priced at $82,029, down 3.46% intraday, with a market cap of $1.62 trillion and 24-hour volume at $44.07 billion.

McGlone also noted Bitcoin’s weakening performance against gold, as the BTC-to-gold ratio has declined from 28X to 21X. In addition, well-known crypto critic Peter Schiff predicted that this correction could last through the decade, casting further doubt on the market’s short-term recovery.

3. FOMC Meeting and US Inflation Data Impact

Macroeconomic factors are also weighing heavily on the market. The upcoming Federal Reserve FOMC meeting on March 18–19 is expected to shape investor sentiment.

As per market data, 97% of traders believe interest rates will remain unchanged, while only 3% expect a rate cut.

In addition, the US CPI data for February, due on March 12, will be a key indicator of inflation trends. Analysts expect a 0.3% increase in core inflation, and if inflation remains high, it could reduce the likelihood of a Fed rate cut — putting further pressure on risk assets like crypto.

Market Sentiment: Extreme Fear Takes Over

The Crypto Fear and Greed Index has dropped to Extreme Fear (score: 20) — a sharp shift from Fear (27) just a day ago, Fear (33) last week, and Fear (44) a month ago.

A fear-driven market often signals investor hesitation. While extreme fear can historically present a buying opportunity for long-term holders, current uncertainty is making traders more cautious.

Will Crypto Recover? What Analysts Predict Next

Despite the crash, analysts believe the market could bounce back — if key support levels hold and macroeconomic conditions improve.

Bitcoin Recovery Targets: Can It Hit $128K?

Popular crypto analyst Ali predicts that if Bitcoin reclaims $84,000 as support, it could ignite a rally towards $128,000. He points to the Cumulative Value Days Destroyed (CVDD) metric, which suggests Bitcoin’s price could range between $86,147 and $86,467 in the near term — offering hope for a bullish reversal.

How FOMC Decisions Could Trigger a Crypto Rebound

The FOMC meeting outcome will be critical. A rate cut by the Fed could restore investor confidence and boost crypto trading activity. However, if the Fed holds rates steady or inflation rises, the market may continue to see heightened volatility.

Final Thoughts: Is This a Temporary Dip or a Longer Downtrend?

Today’s crypto crash has been driven by a mix of events — from Pi Coin’s fall and negative media sentiment on Bitcoin, to looming macroeconomic decisions. While fear is dominating the market, analysts still see potential for recovery if Bitcoin holds crucial support zones and inflation worries ease.

For now, all eyes are on the Federal Reserve and the CPI data release, which will likely determine the next move for crypto markets.