The cryptocurrency market experienced a second week of sell-offs, with Bitcoin prices nearing $80,000 late Sunday. This decline triggered a downturn in major tokens and altcoins. Dogecoin (DOGE) and Cardano's ADA led the losses, slumping nearly 10% in the past 24 hours, while XRP fell over 7%. BNB Chain's BNB, Ether (ETH), and Tron's TRX decreased by 5%, and Bitcoin (BTC) dropped by 4%.
The Crypto Fear and Greed Index hit a multi-year low of 17, indicating 'extreme fear,' the lowest since mid-2023. This index, which measures investor sentiment, ranges from 0 to 100 and acts as a contrarian indicator. The losses have erased gains made after President Trump's crypto reserve announcement earlier this month. Hopes for buying pressure were dashed as Trump repurposed seized BTC holdings as a reserve.
An anticipated White House Crypto Summit on March 7 yielded little market stimulation. Losses were compounded by an ongoing tariff war and a weak dollar index (DYX), which fell below 105. Traders are now closely monitoring macroeconomic data, with some anticipating Federal Reserve interest rate cuts as early as May.