Bitcoin and various leading altcoins are facing potential threats as US equities persist in their decline.
Bitcoin (BTC) has fallen from a year-to-date peak of $109,300 to a 2025 low of $77,396.43 as of March 10.
In a similar fashion, Ethereum (ETH) has dropped below $1,900, while Ripple (XRP) and Cardano (ADA) have declined to $2.1 and $0.65, respectively.
The majority of altcoins have experienced significant declines this year, with the altcoin season index now at 15. Meanwhile, the crypto fear and greed index has sunk to the fear zone at 25, and the total market cap for all cryptocurrencies has plummeted by more than $1 trillion.
US Equities Have Declined This Year
The cryptocurrency market, along with key players such as BTC, XRP, ETH, and ADA, may be poised for further declines as US equities continue to sell off. The blue-chip S&P 500 index has decreased by nearly 10% from its peak this year.
The tech-heavy Nasdaq 100 index has also fallen to $19,280, down by 13% from its highest point this year. A decline of more than 10% from a local high typically indicates that an asset is entering a correction phase.
There are two primary reasons for the drop in US equities. Firstly, there are indications that the artificial intelligence sector, which had previously driven markets to record highs, is beginning to slow down.
Numerous AI stocks, including well-known companies like NVIDIA, AMD, Microsoft, SoundHound, and C3.ai, have all experienced significant declines this year. NVIDIA’s market capitalization has reduced from $3.4 trillion earlier this year to $3.6 trillion.
Secondly, ongoing reciprocal tariffs and a global trade war have raised concerns among economists that the U.S. may be heading toward a recession.
S&P 500, Nasdaq 100 Death Cross
There is a potential risk for further declines in the S&P 500 and Nasdaq 100 indices in the upcoming weeks. As illustrated above, both indices have formed a death cross, where the 50-day and 200-day moving averages intersect.
The last occurrence of a death cross for the Nasdaq 100 index was in 2022, which saw a nearly 40% decline throughout the year.
Historically, there has been a strong correlation between the crypto and stock markets, as both are categorized as high-risk assets. Generally, cryptocurrencies tend to drop when the stock market is experiencing a downturn. For instance, Bitcoin and many altcoins have faced steeper declines this year coinciding with the stock market’s downturn.
