ETH and BTC Plummeted By a Dozen Percent, Why Did The Crypto Market Crash Today (4/3/25)?

Jakarta, Pintu News—The crypto market experienced another collapse today, March 4, 2025, with significant price drops on Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and Ripple (XRP). Various factors contributed to this phenomenon, including the need to fill the CME gap below $90,000.

Crypto analyst Hardy revealed that this price drop occurred due to a gap in the Chicago Mercantile Exchange (CME) that Bitcoin (BTC) had to fill.

Hardy added that Bitcoin bears will be looking to fill all CME gaps, which will accelerate the next uptrend.

Check out the full analysis below!

CME Analysis and Impact on Prices

The main factor affecting the current Bitcoin (BTC) price is the CME futures gap recorded between $92,900 and $85,700.

Reporting from Coingape, the renowned analyst Titan of Crypto has predicted that Bitcoin (BTC) is likely to fill these gaps based on its historical behavior.

The price drawdown before the next rise has proven this prediction. In addition, the strong positive correlation between Bitcoin (BTC) and altcoins such as Ethereum (ETH), Dogecoin (DOGE), and Ripple (XRP) leads to similar declines in these currencies when Bitcoin (BTC) declines.

Also read: 3 Hidden Gem Altcoins to Watch in March 2025

Impact of Trump Announcement and Market Sentiment

The US President, Donald Trump, announced the inclusion of altcoins such as Solana (SOL), Cardano (ADA), and Ripple (XRP) in the crypto strategic reserve, which has created mixed sentiments in the market.

This decision surprised many market participants, who expected the reserve to only include Bitcoin (BTC).

Although the market briefly rebounded after the announcement, confusion and concerns about the seriousness of this strategic reserve also contributed to the price drop.

Arthur Hayes, co-founder of BitMEX, even thinks the announcement brings nothing new and emphasizes the role of the US Congress before these reserves can be implemented.

Read also: White House Crypto Summit Scheduled for March 7, 2025, What Will Be Discussed?

Impact of Tariff Policy and Liquidation of Positions

In addition to the crypto reserve issue, Trump’s announcement of 25% tariffs on Mexico and Canada starting tomorrow has also affected the market. The plan to double tariffs against China from 10% to 20% has also added to the uncertainty in global financial markets.

Data from Coinglass shows that over $213 million of long positions have been liquidated in the last four hours, while short positions suffered smaller losses, with liquidations of around $18 million. This shows how volatile the crypto market is right now and how economic policies can affect price dynamics.

Conclusion

Today’s crypto market collapse shows how complex and interconnected the various factors affecting digital currency prices are. From CME gaps to international policies, each element has a significant impact. Investors and analysts should continue monitoring these developments to understand the future direction the crypto market will take.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coingape. Crypto Market Crash: Why Bitcoin, Ethereum, Dogecoin, XRP Prices Are Dropping Today. Accessed on March 4, 2025
• Featured Image: Generated by AI