Bitcoin and leading altcoins are facing potential risks as U.S. stocks maintain their downward trajectory.
Bitcoin (BTC) has fallen from its year-to-date peak of $109,300 to a low of $77,396.43 as of March 10, 2025.
In a similar pattern, Ethereum (ETH) has dipped below $1,900, while Ripple (XRP) and Cardano (ADA) have decreased to $2.1 and $0.65, respectively.
The majority of altcoins have suffered significant losses this year, with the popular altcoin season index now at 15. The crypto fear and greed index has also plummeted to a fear level of 25, and the total market capitalization of all cryptocurrencies has decreased by more than $1 trillion.
U.S. stocks have declined this year
The cryptocurrency market, along with major players like BTC, XRP, ETH, and ADA, may be exposed to further declines as U.S. equities continue to sell off. The blue-chip S&P 500 index has dropped nearly 10% from its peak this year.
Similarly, the tech-focused Nasdaq 100 index has decreased to $19,280, marking a 13% drop from its highest point this year. A decline exceeding 10% from a recent high typically indicates that an asset has entered a correction phase.
The downturn in U.S. equities can be attributed to two principal factors. Firstly, there are indications that the artificial intelligence sector, which previously propelled the market to record levels, is beginning to decelerate.
Numerous AI stocks, including well-known companies like NVIDIA, AMD, Microsoft, SoundHound, and C3.ai, have all seen substantial declines this year. NVIDIA’s market capitalization has fallen from $3.4 trillion earlier this year to $3.6 trillion.
Secondly, reciprocal tariffs and an escalating global trade conflict have raised concerns among economists about a potential U.S. recession.
S&P 500, Nasdaq 100 death cross
The S&P 500 and Nasdaq 100 indices could face additional declines in the coming weeks, as the two have formed a death cross—an event where the 50-day moving average crosses below the 200-day moving average.
The last occurrence of a death cross for the Nasdaq 100 was in 2022, during which the index experienced a nearly 40% decline that year.
Historically, there has been a strong correlation between crypto and stock markets, both of which are considered high-risk assets. Typically, as the stock market declines, cryptocurrencies also suffer. For instance, Bitcoin and many altcoins have experienced sharper falls this year alongside the declining stock market.