Bitcoin and most major cryptocurrencies experienced significant price declines recently, with Bitcoin tumbling to around $62,500 on March 22 before recovering slightly to around $64,500. The leading crypto is still down over 2% on the day, with its market cap struggling below $1.3 trillion. Ethereum fell around 4% below $3,400 and Binance Coin dropped 4.5% under $560 amid regulatory concerns over Ether’s status. Other top alts like Ripple, Solana, Cardano, Avalanche, Shiba Inu, Polkadot and Tron also declined, though less severely.
The crypto market downturn was exacerbated by four consecutive days of net outflows totaling $93 million from Bitcoin spot ETFs by March 21. Over $53 million in Bitcoin long positions were liquidated on March 22 as prices dropped sharply. This selloff erased over $50 billion from the total crypto market cap overnight, which fell below $2.6 trillion.
However, Toncoin emerged as the standout performer, surging 11% to near its 2021 all-time high around $5.25. Bitcoin Cash also jumped over 4% to $435, bucking the broader market downtrend.
The market volatility comes after Bitcoin soared above $73,000 last week to hit a new all-time high before bears took control amid fears over potential Fed monetary policy shifts. Despite the pullback, some analysts view the correction as healthy before Bitcoin’s halving, allowing accumulation. On-chain data suggests the current bull market is not over yet.
For Ethereum, recent protocol upgrades and growing layer-2 adoption provide potential price support, though regulatory challenges from the SEC probe into Ether’s status pose risks. Overall, market sentiment remains mixed as bulls and bears battle over key support/resistance levels.
