Cryptocurrency Market Crashes 3.70% in 24 Hours, Loses $100 Billion

The cryptocurrency market experienced a significant downturn, with a 3.70% market-wide crash occurring over a 24-hour period between Thursday and Friday. This decline resulted in the total market capitalization of digital assets plummeting by just over $100 billion, bringing it down to $2.71 trillion.

The valuation and price drop was accompanied by a shift in the ‘Fear & Greed Index,’ which hit 12-month lows earlier in March. This index, which measures investor sentiment, had shown signs of recovery in recent sessions but abruptly ended its positive shift due to the latest plunge. At the time of the report, the index stood at 33, close to the previous 2025 lows and significantly below the levels seen between March 2024 and February of the current year.

The attitudes displayed by the ‘Fear & Greed Index’ appear to be the main driver behind the latest plunge. The cryptocurrency market has been extraordinarily susceptible to external bearish factors in the last 12 months and indifferent to internal bullish developments. The latest $100 billion, 24-hour plunge appears to have started due to the contagion from the stock market, where the Magnificent 7 became something of an S&P 500 loss leader earlier in the week, only to be followed by the automotive industry on Thursday.

The root cause behind the selloff is a combination of tariffs and the growing fears that Silicon Valley may be facing a Dot-com-like crash due to the alleged data center bubble. Looking beyond just the latest woes, much of the 2025 market troubles can be linked to the approach to international relations, growing competition from China, and the fact that inflation is once again on the rise. The fact that the stock and cryptocurrency markets enjoyed an exceptionally strong 2024 is, likewise, not helpful as it had both created the conditions for a bearish correction and increased fears that certain sectors might have inflated into dangerous bubbles.

Despite the grim short-term picture, analysts, insiders, moghuls, and the community have remained relatively bullish. For example, Michael Saylor opined that Bitcoin’s market capitalization could eventually hit $500 trillion when speaking at the 2025 Blockchain Summit. The latest prediction is a significant upgrade from the 2021 $100 trillion prediction and, arguably, a significant stretch. On the topic of another popular cryptocurrency, XRP, an established cryptocurrency analyst maintained that the token could flip back to a bullish outlook, provided it climbs above $3. The cryptocurrency community likewise remains optimistic with the XRP predictions, though Friday could sour the situation as multiple analyses have identified March 28 as an important day for the token.