DOGE, ADA, XRP Drop 10% as Crypto Fear Index Hits Multi-Year Low
The crypto market continues to experience a sell-off, with bitcoin (BTC) prices dropping near $80,000. This decline has impacted major tokens and altcoins:
- Dogecoin (DOGE) and Cardano (ADA) fell nearly 10% in the last 24 hours.
- XRP decreased over 7%.
- BNB and ether (ETH) dropped 5%, while BTC lost 4%.
The crypto fear and greed index reached a multi-year low of 17, indicating 'extreme fear,' the lowest since mid-2023.
Recent gains from President Trump's announcement of a strategic crypto reserve have been entirely erased. Traders had anticipated significant buying pressure, but the repurposing of seized BTC holdings dampened expectations.
A recent White House Crypto Summit on March 7 resulted in minimal outcomes, leading to further disappointment among traders. The summit announced a stablecoin legislation framework by August but lacked impactful announcements.
Global markets are under pressure due to an ongoing tariff war. The dollar index (DYX) is at its lowest since November, impacting risk assets negatively.
Traders are currently awaiting macroeconomic data for future positioning. Kevin Guo from HashKey Research noted that despite optimistic signals from the summit, crypto assets remain aligned with a negative trend following US equities.
Investors do not foresee a reversal in trends as the Federal Reserve maintains a cautious approach towards interest rates. However, there is speculation that rate cuts could resume by May, which might benefit crypto investments.