- A crypto crash is happening today, with Bitcoin and most altcoins being in the red.
- Some of the top losers were coins like Siren, Polkadot, Shiba Inu, and Pi Network.
- The decline coincided with the ongoing stock market plunge.
The crypto market crash is happening today, with Bitcoin and most altcoins, including popular names like Siren (SIREN), Polkadot (DOT), Shiba Inu (SHIB), and Pi Network (PI), among the top laggards. As a result, the market capitalization of all coins dropped by 1.55% to $2.41 trillion.
Crypto Crash Resumes Amid War Jitters
The ongoing crypto crash has coincided with the stock market, with the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 indices falling by 170, 30, and 190 points, respectively.
On the other hand, energy prices jumped, with Brent and West Texas Intermediate (WTI) benchmarks rising to $99 and $91, respectively. Gasoline and natural gas prices jumped, while bond yields continued to rise, with the 10-year and 2-year yields rising to 4.4% and 3.9%, respectively.
This price action is occurring as investors anticipate that the ongoing Iran war will last longer than expected, despite Donald Trump’s message that Iran and the United States are talking.
The reality is that Trump is not the only one calling the shots. Instead, Israel, which wants to destroy Iran, has a long-term view of the war. Iran will also want more concessions to reopen the Strait of Hormuz.
As a result, analysts believe consumer inflation will continue to rise in the coming months, with the headline Consumer Price Index (CPI) rising to over 3% this year.
If this happens, the Federal Reserve will be between a rock and a hard place, as the economy slows. The most recent data showed that the economy lost over 92,000 jobs in February as the unemployment rate jumped to 4.4%.
READ MORE: Coinbase Stock Price Signals Reversal Despite Bullish Tailwinds
Private Credit Woes Continue
The stock and crypto markets are also falling amid ongoing jitters in the private credit industry. Ares, a top industry player, announced it was limiting redemptions from its $10.7 billion private credit fund. It capped withdrawals at 5% of shares.
Similarly, Apollo Global, a leading company in the alternative asset investment industry, is curbing redemptions at Apollo Debt Solutions, which has over $25 billion in assets under management. As a result, the stocks of most companies in the industry have tumbled as investors anticipate a bubble burst.
On the positive side, the crypto market is facing some major tailwinds, including the rising ETF inflows. Data shows that spot Bitcoin ETFs have added over $1.6 billion this month, bringing their net inflows to $56 billion. Spot Ethereum ETFs have added $108 million in assets.
This is one of the top reasons why some analysts believe that the crypto market may have bottomed. In a note, Bernstein analysts said Bitcoin may have bottomed and predicted it could hit the key resistance level at $150,000 in the near term.
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