The cryptocurrency market experienced a significant downturn on Friday, extending its recent volatility streak. Bitcoin plummeted below $104,000**, while Ethereum struggled to hold the **$2,400 resistance level. The total crypto market capitalization dropped sharply to $3.2 trillion, with major altcoins like SPX6900 (SPX), Pepe (PEPE), and Polkadot (DOT) declining over 5%.
Key Reasons Behind the Market Decline
1. Triple Witching Amplifies Volatility
The crypto crash coincided with the U.S. triple-witching event, where $6.5 trillion in options contracts expired simultaneously. Historically, this event triggers turbulence across Bitcoin, altcoins, and equities—evidenced by declines in the S&P 500, Dow Jones, and Nasdaq 100.
👉 Explore how market cycles impact crypto trends
2. Geopolitical Tensions Weigh on Sentiment
High-stakes talks between the EU and Iran ended without progress, escalating geopolitical risks. With no resolution in sight, traders are monitoring potential Fed policy shifts—especially if rising oil prices delay interest rate cuts.
Divergent Fed Views:
- Mary Daly (San Francisco Fed) hinted at fall 2025 rate cuts.
- Christopher Waller suggested cuts could begin as early as July 2025, potentially boosting crypto markets.
3. Crypto Fear & Greed Index Turns Neutral
The Crypto Fear and Greed Index fell from 65 (Greed) to 48 (Neutral), signaling weakening investor confidence. A drop into the Fear zone often precedes further downside.
Silver Lining:
- Bitcoin and Ethereum ETFs show rising demand.
- Exchange reserves are shrinking, indicating long-term holding sentiment.
FAQ: Addressing Key Concerns
Q1: Will Bitcoin recover soon?
A1: While short-term volatility persists, strong ETF inflows and reduced supply suggest a potential rebound.
Q2: How does triple witching affect crypto?
A2: It creates cross-market volatility as traders rebalance positions tied to expiring stock, index, and futures options.
Q3: Should I buy altcoins like PEPE or DOT now?
A3: Focus on projects with solid fundamentals—market downturns often separate high-potential tokens from speculative ones.
👉 Learn strategic crypto investment approaches
Disclaimer: This content is for informational purposes only and does not constitute financial advice.
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