Crypto Market Nosedives as ETH/BTC Ratio Hits 5-Year Low Amid Broader Risk-Off Sentiment
March 29, 2025 — A sharp reversal in crypto markets wiped out recent gains on Friday, dragging Bitcoin (BTC) and Ethereum (ETH) lower alongside traditional equities. The downturn came amid renewed macroeconomic fears and weak economic data from the U.S.
Bitcoin tumbled nearly 4% to $83,800, retreating from recent highs near $88,000. The CoinDesk 20 Index dropped 5.7%, with high-profile altcoins such as Avalanche (AVAX), Polygon (POL), Near (NEAR), and Uniswap (UNI) each suffering losses close to 10%. According to TradingView, the day’s market carnage erased roughly $115 billion in total crypto market capitalization.
Ethereum fell over 6%, underperforming Bitcoin and extending its weakening trend. The ETH/BTC ratio fell to its lowest point since May 2020. Analysts point to sustained outflows from ETH-focused ETFs and muted investor appetite as key contributors. In contrast, spot Bitcoin ETFs have attracted more than $1 billion in inflows over the past two weeks, per data from Farside Investors.
Friday’s sell-off coincided with a broader decline in U.S. equities following the release of disappointing economic indicators. The S&P 500 dropped 2%, while the Nasdaq slumped 2.8%. Crypto-related stocks were hit hard: Strategy (MSTR) fell 10% and Coinbase (COIN) lost 7.7% on the day.
The February Personal Consumption Expenditures (PCE) report showed inflation rising 2.5% year-over-year, with core inflation at 2.8%, slightly above forecasts. Real consumer spending remained flat, and growth forecasts took a hit. The Atlanta Fed’s GDPNow model now predicts a Q1 GDP contraction of 2.8%, or 0.5% when adjusted for gold flows — fueling investor concerns about stagflation.
Further compounding market anxiety is the Trump administration’s looming April 2 rollout of sweeping tariffs, which has sparked fears of economic retaliation and added stress to global markets.
Technical Outlook: Retesting Support or Warning Sign?
Some traders suggest Bitcoin’s drop may simply reflect a technical correction, filling the CME futures gap between $84,000 and $85,000 left open earlier this week. Historically, BTC has shown a tendency to revisit these “gap zones.”
“Whether this is the start of a deeper correction or just a reset is still unclear,” said Joel Kruger, market strategist at LMAX Group. “Despite short-term pressure, the bigger picture still includes growing institutional interest and regulatory tailwinds.”
Kruger noted that the $70,000 to $75,000 range could offer strong support if selling pressure intensifies.
