by Vincent Muthee
The crypto market is in the red on the final day of March as sell-side pressure continues to rattle the market. Bitcoin (BTC) has dropped to the $66k level, with altcoins following through as macro headwinds and geopolitical tensions trigger a fresh wave of volatility.
At the same time, derivatives liquidations, cautious institutional positioning, and worsening sentiment are intensifying the sell-off. Market participants are now watching whether Bitcoin can hold near current levels or face deeper losses.
Bitcoin Slides Toward $66K as Macro Pressure Builds
Bitcoin traded at $66,610 on March 31 and marked its weakest weekly close of the month. The asset dropped about 1.93% in the past 24 hours. The broader crypto market moved in the same direction, with total market capitalization falling 1.44% to around $2.29 trillion.
Macro developments influenced sentiment as the Federal Reserve Chair Jerome Powell signaled that interest rates would likely remain steady even as oil prices continue to climb. According to reports, Crude recently approached $105 amid rising tensions tied to Iran. Higher energy prices often strengthen the U.S. dollar and tighten liquidity conditions, which usually weigh on risk assets such as cryptocurrencies.
Geopolitical developments also continue to keep the crypto market on edge. Recently, US President Donald Trump said that he aims to end the U.S.-Iran conflict in several weeks. Nonetheless, uncertainty regarding the Strait of Hormuz and potential energy supply disruptions remains pertinent to global markets.
Institutional Activity and Liquidations Intensify Volatility
Institutional flows are also contributing to the latest market moves. Data from SoSoValue shows that U.S spot Bitcoin ETFs recorded $69.44 million in net inflows on March 30. Spot Ether ETFs added $4.96 million during the same period.
Despite those inflows, many large investors appear to have reduced risk exposure. Traders are adjusting positions as uncertainty around macro policy and global events increases. This shift places pressure on leveraged trades in derivatives markets.
With BTC crashing, roughly $79.85 million in Bitcoin positions were liquidated over the past 24 hours. At the same time, derivatives trading volume has jumped 78% to about $794 billion. High leverage is amplifying losses and accelerating selling pressure across the market.
According to the on-chain data provided by CryptoQuant, long-term Bitcoin holders have begun selling at a loss. This move is typically referred to as capitulation by analysts, and it usually shows up when the market is under extreme pressure.
Altcoins Fall as Bitcoin Falters
Ethereum (ETH), the second largest altcoins, is also falling alongside Bitcoin. Ethereum dropped towards the $2,000 level after several sessions of downside pressure. On the other hand, XRP traded near its $1.30 support zone as momentum weakened.
Other large cryptocurrencies also posted declines. Solana, Dogecoin, Cardano, and BNB all fell as traders pulled back exposure throughout the market. Altcoins generally respond more when Bitcoin declines, as there is a thinner spread of liquidity in those assets.
Market Sentiment Turns Cautious Ahead of Key Data
Crypto market sentiment has worsened over the past few days. At the moment, the Crypto Fear and Greed Index is at 11, indicating that the market is experiencing extreme fear. These levels are common when there is a high sell-off and high uncertainty.
Additionally, several developments might impact crypto markets at the beginning of April. The March US jobs report will be released on April 3. Impressive employment figures would dampen forecasts of short-term declining interest rates.
Traders must also monitor inflation data. The April 10 Consumer Price Index report will give new information on the prices before the next Federal Reserve policy meeting on April 28-29.
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