Bitcoin and other top altcoins may be at risk as American equities continue their downward trend.
Bitcoin (BTC) has dropped from the year-to-date high of $109,300 to a 2025 low of $77,396.43 on March 10.
Similarly, Ethereum (ETH) has plunged below $1,900, while Ripple (XRP) and Cardano (ADA) have fallen to $2.1 and $0.65, respectively.
Most altcoins have crashed this year, with the closely watched altcoin season index moving to 15. The crypto fear and greed index has dropped to the fear zone of 25, while the market cap of all coins has dropped by over $1 trillion.
US equities have slumped this year
The crypto market and its top players like BTC, XRP, ETH, and ADA may be at risk of a deep dive now that US equities are selling off. The blue-chip S&P 500 index has dropped by almost 10% from its highest point this year.
Similarly, the tech-heavy Nasdaq 100 index has moved to $19,280, down by 13% from its highest level this year. A drop of over 10% from a local top is a sign that an asset has moved into a correction.
US equities have dropped for two main reasons. First, there are signs that the artificial intelligence industry that pushed it to a record high is starting to slow down.
Most AI stocks, including popular names like NVIDIA, AMD, Microsoft, SoundHound, and C3.ai have all dropped sharply this year. NVIDIA’s market cap has dropped from $3.4 trillion earlier this year to $3.6 trillion.
Second, reciprocal tariffs and a global trade war have many economists worried that the U.S. could wind up in a recession.
S&P 500, Nasdaq 100 death cross
There is a risk that the S&P 500 and Nasdaq 100 indices will have more downside in the coming weeks. That’s because, as shown above, the two indices have formed a death cross when the 50-day and 200-day moving averages cross each other.
The last time that the Nasdaq 100 index formed a death cross was in 2022, and it dropped by almost 40% during the year.
Historically, the crypto and stock markets are highly correlated because they are categorized as risky assets. In most periods, cryptocurrencies drop when the stock market is falling. For example, Bitcoin and most altcoins have had a steeper crash this year as the stock market dropped.
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