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Understanding why Bitcoin, Ethereum, XRP, and Doge prices fell today due to market conditions and macroeconomic factors warning of further resistance
On March 28, the cryptocurrency market declined, with Bitcoin price dropping to an intraday low of $85,660. The BTC price drop also affected Ethereum, XRP, and Doge. Bitfinex data shows that massive spot market sell-offs led to a widespread market collapse. Macroeconomic issues such as Trump's new tariffs and PCE inflation data also triggered market anxiety.
Why are BTC, ETH, XRP, and DOGE falling today?
Bitcoin price struggled to maintain the $86,000 support level after falling 1.6% in 24 hours. Meanwhile, Ethereum and XRP dropped by 5% and 4% respectively. Despite analysts' optimistic outlook for Doge, its price experienced the largest single-day decline of 7%.
One reason for today's Bitcoin price decline is the massive sell-off activity on Bitfinex exchange. The spot CVD indicator revealed this sell-off, indicating a large number of sell orders for Bitcoin with weakening buying pressure. The spot CVD has been trending downward since the beginning of this week, suggesting that traders are surrendering.
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Ethereum price also declined today due to low buyer demand. An analyst on X noted that selling pressure has been dragging down ETH since last December. If this continues, Ethereum will continue to fall and may drop below $2,000.
Moreover, BTC Deribit Skew shows a bearish sentiment towards Bitcoin. Analyst Nazro observed an increase in traders buying put options in the $80,000 to $85,000 price range. When many traders purchase put options instead of call options, it indicates they expect Bitcoin prices to continue falling.
This negative market sentiment is one of the factors causing the cryptocurrency market to decline today. Other reasons for today's cryptocurrency price drop
In addition to current market conditions forcing Bitcoin, Ethereum, XRP, and Doge prices to fall, macroeconomic factors have also exacerbated today's downward trend in the cryptocurrency market.
The car tariffs recently announced by President Trump will take effect next week. These tariffs are expected to impact the global automotive industry. More importantly, these tariffs are weakening the US economic outlook, causing today's cryptocurrency market to be tense.
A recent Coingape article pointed out that economists warn of an imminent economic recession, which also affects Bitcoin's price. Meanwhile, Reuters reported that the US Congressional Budget Office predicts weak economic growth and rising unemployment rates in the coming years.
The US Personal Consumption Expenditures (PCE) inflation data will be released today, and any signs indicating rising consumer costs will force Bitcoin, Ethereum, XRP, and Doge prices to fall again. Traders will closely monitor these data to assess the Federal Reserve's interest rate decisions.
Bitcoin price needs to close decisively above $86,000 to avoid a continuing downward trend, while Ethereum needs to maintain the critical $2,000 support level. If XRP price holds at $2, it may rebound, and Doge has fallen below $0.20, indicating further resistance.
