BTC, ETH, Crypto Takes a Beating This Week

Crypto Market Update: Bitcoin Plummets Below $80,000, Altcoins Follow in Steep Decline

March 01, 2025 – 11:28 AM EST – The cryptocurrency market is reeling from a dramatic sell-off, with Bitcoin (BTC) plunging below $80,000 and major altcoins posting double-digit losses over the past week. As of this morning, Bitcoin is trading at approximately $79,400, down nearly 6% in the last 24 hours and over 20% from its mid-February peak of $100,000. Ethereum (ETH) has fared even worse, dropping to around $2,000—a 9.5% daily decline—while the broader market sentiment has shifted from cautious optimism to outright fear.

Bitcoin and Ethereum: A Brutal Correction

Bitcoin’s descent below $80,000 marks its lowest level since November 2024, effectively wiping out nearly all gains made after Donald Trump’s election win sparked a wave of excitement in the crypto space. The flagship cryptocurrency has been hammered by a combination of factors, including massive outflows from Bitcoin Exchange-Traded Funds (ETFs), which have seen over $1.14 billion pulled in the past two weeks alone. Posts on X suggest this decline aligns with growing macroeconomic concerns, including Trump’s proposed tariffs and fears of a global trade war, which have soured risk appetite across asset classes.

Ethereum, meanwhile, has sunk to $2,000, a level not seen since late 2024, reflecting a 24% drop over the past week. The ETH/BTC ratio has cratered to 0.025, underscoring Ethereum’s underperformance relative to Bitcoin and reviving debates about its long-term narrative. Analysts point to a lack of fresh catalysts—such as stalled progress on Ethereum upgrades or competition from rival blockchains like Solana—as reasons for its weakness. The recent $1.4 billion ETH hack from the Bybit exchange has only deepened the panic, with stolen funds reportedly being dumped on the market.

General Market Sentiment: Fear Takes Hold

The crypto market’s total capitalization has shed over $570 billion since early February, slipping to $2.6 trillion. The Fear & Greed Index has plummeted to 30, signaling widespread fear among investors. This shift follows a turbulent month marked by high-profile security breaches, including the Bybit hack, and macroeconomic headwinds like rising Treasury yields and a stronger U.S. dollar. Posts on X highlight a growing correlation between crypto and traditional equities, with one user noting, “BTC is just another risk asset now—tariffs, recession fears, and no pro-crypto regs are killing it.”

Liquidations have surged, with $714 million in leveraged positions wiped out in the past 24 hours, per CoinGlass data. Bitcoin and Ethereum led the carnage, accounting for $380 million and $147 million in liquidations, respectively. The sell-off has also exposed vulnerabilities in centralized exchanges, with Bybit’s $2 billion BTC reserve drain amplifying distrust.

Popular Altcoins: No Safe Haven

Altcoins have not been spared. Solana (SOL), once a darling of the market at $208, has crashed to $145, a 30% decline from its February high. Ripple (XRP), trading at $1.98, is down 21% this week, despite earlier hopes of regulatory tailwinds. Dogecoin (DOGE) has tumbled to $0.25, shedding 28% amid fading meme coin hype. Other notable losers include SUI and XYZVerse (XYZ), with losses ranging from 30% to 50%. On-chain data from Glassnode shows a sharp drop in trading volume and open interest, suggesting the speculative fever that drove altcoin gains in late 2024 has cooled significantly.

Altcoin Season: Delayed or Dead?

The prospect of an altcoin season in 2025 now seems distant. Bitcoin dominance has climbed back to 62%, a sign that capital is consolidating into BTC rather than flowing into smaller-cap assets. The ETH/BTC ratio’s collapse has dashed hopes of an Ethereum-led rally, and the altcoin market cap (excluding BTC) has fallen to $1.1 trillion—well below its 2021 peak. Posts on X reflect skepticism, with one user stating, “Altseason’s off the table until BTC stabilizes and dominance drops below 58%—maybe Q3 if we’re lucky.”

Analysts offer mixed outlooks. Some argue that Bitcoin needs to close above $85,000 to regain bullish momentum, potentially paving the way for altcoins in Q2 or Q3 2025. Others see a prolonged bear phase, with BTC possibly testing $70,000 if support at $77,000 fails—a level tied to unfilled CME gaps. Stablecoin inflows, a key precursor to altcoin rallies, remain flat, further dimming near-term prospects.

Looking Ahead

The crypto market faces a critical juncture. Bitcoin’s ability to hold $79,000 and Ethereum’s defense of $2,000 will dictate the next move. While some traders are “buying the dip,” anticipating a rebound, the confluence of tariffs, hacks, and institutional outflows suggests recovery could be months away. For altcoins, the wait for a season of outsized gains may stretch into late 2025—if it happens at all. Investors are urged to monitor BTC dominance, liquidation trends, and global economic signals closely as the market navigates this storm.