Crypto Markets Crumble as Ethereum Weakens Against Bitcoin Amid Economic Worries

The crypto market took a sharp hit on Friday, shedding over $115 billion in value as investors fled risk assets in response to concerning economic signals from the U.S.

Bitcoin (BTC), which hovered near $88,000 just a day earlier, dropped to $83,800—marking a 3.8% daily loss. The CoinDesk 20 Index slumped 5.7%, with major altcoins like Avalanche (AVAX), Near (NEAR), Polygon (POL), and Uniswap (UNI) each plunging around 10%.

Ethereum (ETH) extended its downward trend, falling more than 6% and hitting its weakest price ratio against BTC since May 2020. Institutional interest in ETH appears to be fading—spot ETH ETFs have seen no net inflows since early March, while Bitcoin ETFs continue to attract significant capital, drawing in over $1 billion in the past two weeks, according to Farside Investors.

The broader market downturn coincided with a sell-off in U.S. equities. The S&P 500 fell 2% and the Nasdaq slid 2.8%, while crypto-related stocks like MicroStrategy (MSTR) and Coinbase (COIN) dropped 10% and 7.7%, respectively.

February’s Personal Consumption Expenditures (PCE) report revealed core inflation at 2.8% year-over-year—slightly above forecasts. While consumer spending rose 0.4%, inflation-adjusted growth was minimal, prompting concerns about slowing economic momentum. The Atlanta Fed’s GDPNow model now estimates a potential 2.8% contraction in Q1 GDP, intensifying stagflation fears.

Adding to the market’s unease is the upcoming implementation of sweeping U.S. tariffs—set for April 2 and dubbed “Liberation Day” by the Trump administration. The move has triggered concerns over broader economic fallout.

Market Watch: Technical Pullback or Deeper Correction?

Bitcoin’s recent dip may also be linked to technical patterns. Analysts pointed to a CME futures gap between $84K–$85K—zones BTC historically tends to revisit. CoinDesk’s James Van Straten noted earlier this week that a move into that price range was expected.

Still, the question remains: has the market bottomed out?

“It’s too early to tell if we’ve reached a 2025 low,” said Joel Kruger, strategist at LMAX Group. Despite the correction, he highlighted growing institutional participation and clearer crypto policy developments as longer-term positives.

“If we see further downside, expect significant support around the $70,000 to $75,000 range,” he added.