Crypto Market Implodes as Treasury Yields Fall Ahead of Nonfarm Payrolls data

Bitcoin, Ethereum, and Ripple prices have crashed this week as Donald Trump's tariff threat complicated the Federal Reserve's approach to rate cuts.

Bitcoin, Ethereum, and Ripple prices crashed this week as Donald Trump’s tariff threat complicated the Federal Reserve’s approach to rate cuts. Together, the crypto market has lost over $1 trillion in value from its peak in 2024.

Here are the latest developments in the crypto market, the top-performing tokens, and the upcoming data to watch out for.

Crypto Market Suffers $1 Trillion Meltdown From Peak as Nonfarm Payrolls in Focus

The crypto market has seen a painful meltdown, with most tokens crashing over 50% from their highest levels this year. This downturn began after the US president threatened tariffs on China, the biggest trading partner.

The tariffs will likely trigger a trade war, which will slow down economic growth and lead to stagflation—a period characterized by weak economic growth and high inflation.

As a result, analysts and the bond market are now largely expecting the Fed to cut interest rates to stimulate growth. This explains why Treasury Yields have pulled back, with the 10-year moving to 4.24% and the 30-year falling to 4.5%.

The US will publish the closely-watched personal consumption expenditure (PCE) data on Friday and the nonfarm payroll (NFP) next week. Economists polled by Reuters expect the data to show that the NFPs fell to 133k in February from 143k in January. The unemployment rate will likely remain at 4.0%.

The crypto market crash comes as the US stock market slips and crypto ETF outflows continue. The Dow Jones index fell 200 points on Thursday, while the S&P 500 and Nasdaq 100 slipped by 95 and 530 points, respectively.

Meanwhile, both spot BTC and ETH ETFs have seen large outflows in the past few weeks.

BTC Price Analysis: Bitcoin ETF Outflows Continue As Crypto Fear And Greed Index Falls Further

BTC price crashed and followed the ETF outflows, with these ETFs now posting outflows for the last eight straight days. These ETFs have seen outflows of $3.15 billion in the past week, reducing the net inflow to $36.85 billion from $40 billion earlier this year.

That is a sign that investors are fearful as the crypto fear and greed index now stands at 10/100, getting closer to extreme levels of fear.

Bitcoin price crashed after forming a double-top pattern at $108,215. It has now crashed below the neckline of the pattern at $89,107 and the 200-day moving average.

If the bearish momentum persists, then Bitcoin may continue crashing to hit the March 2024 high of $73,615. A break above the double-top pattern at $108,215 would be needed to propel Bitcoin into a bull run.

ETH Price Forecast: Ethereum Drops Below Key Level As Average Directional Index Soars

Ethereum price crashed below the key support level at $2,130, its lowest swing high since September last year. This crash occurred as the Ethereum price formed a death cross pattern.

The 200-day and 50-day moving averages crossed each other, and the 50-day moving average is still sloping downwards.

The average directional index (ADX) has risen to 42, indicating strong momentum in the current downtrend. As such, the ETH price may drop to $2,000 as the crypto market sell-off continues.

XRP Price Technical Analysis: As Ripple Case Conclusion In Sight, XRP May Crash To $1.1393

Ripple price dropped as its lawyer, Jeremy Hogan, predicted that the case with the SEC will not conclude before March 14.

This is because, in February, the SEC made a last-minute application to introduce new evidence, which the judge accepted. Afterward, the case was put on hold to allow both parties to prepare their arguments.

XRP price crashed to $2 as the crypto market industry suffered a $1 trillion meltdown. This was a crucial level as it is the neckline of the head and shoulders pattern and the 50% Fibonacci Retracement level.

The Relative Strength Index (RSI) indicator is falling, while the ADX is rising, Pointing to less strength but more momentum in the current downtrend. This means that the XRP price may continue crashing to $1.1393, the 78.6% Fibonacci retracement point.