Ethereum Slumps to 5-Year Lows Against Bitcoin as Crypto Market Sheds $115B
The crypto market endured a sharp downturn on Friday, erasing gains from earlier in the week as macroeconomic concerns and disappointing U.S. economic data sent risk assets spiraling.
Bitcoin (BTC), which was trading just below $88,000 on Thursday, plunged to around $83,800—a 3.8% drop over 24 hours. The CoinDesk 20 Index followed suit, falling 5.7%, with major altcoins like Avalanche (AVAX), Polygon (POL), Near (NEAR), and Uniswap (UNI) all sliding nearly 10%.
Ethereum (ETH) was hit especially hard, losing over 6% and falling to its weakest level relative to bitcoin since May 2020. The continued underperformance of ETH has been underscored by the lack of inflows into spot ETH exchange-traded funds (ETFs), while spot BTC ETFs have attracted over $1 billion in the past two weeks, according to Farside Investors.
Friday’s losses wiped out a staggering $115 billion from the total crypto market capitalization, data from TradingView shows.
The crypto rout came amid broader market turmoil. U.S. stocks saw steep declines after the release of the February PCE inflation report. The S&P 500 dropped 2%, while the Nasdaq slid 2.8%. Crypto-related equities also took a hit—MicroStrategy (MSTR) fell 10% and Coinbase (COIN) lost 7.7%.
The PCE report showed inflation at 2.5% year-over-year, with core inflation at 2.8%—slightly above expectations. Consumer spending rose 0.4%, but inflation-adjusted numbers point to stagnation. The Atlanta Fed’s GDPNow model now estimates a 2.8% contraction in Q1 GDP (0.5% when adjusted for gold flows), fueling stagflation worries.
Adding to investor anxiety is the looming implementation of sweeping U.S. tariffs on April 2, dubbed “Liberation Day” by the Trump administration.
Market Correction or Temporary Pullback?
Bitcoin’s recent price drop may not just be a sign of weakness. Some analysts suggest it could be a technical move to “fill the gap” between last Monday’s opening price and the previous week’s CME futures close in the $84,000–$85,000 range—a common phenomenon in BTC’s trading history.
“It’s tough to say whether 2025’s bottom is in,” said Joel Kruger, market strategist at LMAX Group. He pointed out some silver linings, including increasingly pro-crypto sentiment in the U.S. and growing interest from traditional finance players.
“Should we see further declines, the $70K–$75K range is likely to provide strong support,” Kruger added.
