$115B Market Wipeout Sends Bitcoin Crashing Below $84K

Crypto Market Nosedives as Ethereum Hits Multi-Year Lows vs Bitcoin

The crypto rally that briefly revived investor optimism this week came to an abrupt end Friday, as a wave of selling pressure rattled the market and wiped out over $115 billion in value.

Bitcoin (BTC) sank from just under $88,000 on Thursday to around $83,800, marking a 3.8% 24-hour loss. The broader CoinDesk 20 Index also dropped sharply, down 5.7% on the day. Leading altcoins took even harder hits—Avalanche (AVAX), Near Protocol (NEAR), Polygon (POL), and Uniswap (UNI) all declined nearly 10%.

Ethereum (ETH) bore the brunt of the downturn among top cryptos, shedding over 6% and falling to its lowest value relative to BTC since May 2020. Analysts point to waning interest in ETH-based ETFs—none of which have recorded positive inflows since early March. By contrast, BTC ETFs continue to attract capital, pulling in over $1 billion in the past two weeks alone, according to data from Farside Investors.

Friday’s crypto crash paralleled a broader risk-off move in U.S. equities. The S&P 500 and Nasdaq both posted steep losses of 2% and 2.8%, respectively. Crypto-linked stocks followed suit, with MicroStrategy (MSTR) tumbling 10% and Coinbase (COIN) slipping 7.7%.

The sell-off was spurred by a hotter-than-expected PCE inflation report. February’s reading showed core inflation at 2.8% annually, above analyst forecasts. Meanwhile, real consumer spending was flat, raising red flags for economic growth. The Atlanta Fed’s GDPNow model now predicts a potential 2.8% Q1 GDP contraction, fueling fears of stagflation.

Also weighing on sentiment are looming U.S. tariffs set to kick in on April 2—referred to by the Trump administration as “Liberation Day.” Markets fear the move could spark retaliation and deepen economic uncertainty.

Is Bitcoin Filling the CME Gap or Prepping for a Deeper Drop?

Some market watchers suggest Bitcoin’s slide may be technical rather than fundamental. A gap left on the Chicago Mercantile Exchange (CME) futures chart between $84K–$85K was likely to be filled, according to CoinDesk analyst James Van Straten—a recurring pattern in BTC trading.

“It’s still unclear whether this correction marks the bottom for 2025,” said Joel Kruger of LMAX Group. However, he noted that the bigger picture remains promising, citing improving regulatory clarity in the U.S. and rising institutional adoption.

“If the decline continues, we expect strong support to emerge between $70,000 and $75,000,” Kruger added.