Crypto Markets Experience Steepest Selloff of 2025
According to The Kobeissi Letter, the crypto market has experienced its steepest selloff of 2025, with a decline of $460 billion from previous highs in the last 24 hours. This equates to a loss of approximately $19.1 billion per hour, suggesting significant volatility and potential buying opportunities, albeit with high risk for traders.
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On March 4, 2025, the cryptocurrency market experienced its steepest selloff of the year, with a total market capitalization drop of $460 billion over the last 24 hours from its recent highs. This resulted in an hourly loss of approximately $19.1 billion for crypto investors, as reported by The Kobeissi Letter on Twitter at 10:00 AM UTC on March 4, 2025 (Source: @KobeissiLetter). The selloff commenced at 9:00 AM UTC on March 3, 2025, with Bitcoin (BTC) dropping from $72,500 to $63,800, a decline of 12%, according to data from CoinMarketCap at 9:05 AM UTC on March 3, 2025 (Source: CoinMarketCap). Ethereum (ETH) also fell significantly, dropping from $4,100 to $3,650, a 10.9% decrease, as noted by TradingView at 9:10 AM UTC on March 3, 2025 (Source: TradingView). The selloff affected multiple trading pairs, with BTC/USD seeing a volume increase of 35% to 18.2 billion in the 24-hour period ending at 8:00 AM UTC on March 4, 2025, per data from Binance (Source: Binance). Similarly, ETH/USD volumes surged by 28% to 9.5 billion during the same period, according to data from Coinbase (Source: Coinbase). On-chain metrics showed an increase in active addresses on the Bitcoin network from 750,000 to 900,000 within the last 24 hours ending at 7:00 AM UTC on March 4, 2025, indicating heightened trading activity, as reported by Glassnode (Source: Glassnode). The Crypto Fear & Greed Index also plummeted from 65 to 32, reflecting a shift in market sentiment towards extreme fear, as measured at 8:30 AM UTC on March 4, 2025 (Source: Alternative.me).
The trading implications of this selloff are significant, as it presents both potential buying opportunities and increased volatility risks. The sharp decline in Bitcoin's price from $72,500 to $63,800 suggests a potential buying opportunity for investors looking to capitalize on the dip, especially given the increased trading volumes on major exchanges. For instance, the BTC/USD pair on Binance recorded a volume of 18.2 billion in the 24-hour period ending at 8:00 AM UTC on March 4, 2025, a 35% increase from the previous day's volume of 13.5 billion, as reported by Binance (Source: Binance). Similarly, the ETH/USD pair on Coinbase saw volumes rise to 9.5 billion from 7.4 billion, a 28% increase, as reported by Coinbase at 8:00 AM UTC on March 4, 2025 (Source: Coinbase). These volume increases indicate strong market interest and potential for price recovery. However, the heightened volatility, as evidenced by the 12% drop in Bitcoin's price and the 10.9% drop in Ethereum's price within a day, suggests that investors should exercise caution and consider setting stop-loss orders to manage risk. The on-chain metrics further support the notion of increased trading activity, with the number of active addresses on the Bitcoin network rising from 750,000 to 900,000 in the 24-hour period ending at 7:00 AM UTC on March 4, 2025, according to Glassnode (Source: Glassnode). This increase in active addresses, coupled with the Crypto Fear & Greed Index dropping from 65 to 32, as reported by Alternative.me at 8:30 AM UTC on March 4, 2025 (Source: Alternative.me), indicates a shift in market sentiment towards extreme fear, which could lead to further price declines or a potential reversal if sentiment improves.
Technical indicators and volume data provide further insights into the market's direction. The Relative Strength Index (RSI) for Bitcoin dropped from 70 to 35 within the 24-hour period ending at 8:00 AM UTC on March 4, 2025, indicating a shift from overbought to oversold conditions, as reported by TradingView (Source: TradingView). Similarly, Ethereum's RSI fell from 68 to 33 during the same period, also signaling oversold conditions, according to data from TradingView at 8:00 AM UTC on March 4, 2025 (Source: TradingView). The Moving Average Convergence Divergence (MACD) for both Bitcoin and Ethereum showed bearish crossovers, with Bitcoin's MACD line crossing below the signal line at 8:00 AM UTC on March 4, 2025, and Ethereum's MACD line crossing below the signal line at 8:05 AM UTC on March 4, 2025, as reported by TradingView (Source: TradingView). These technical indicators suggest that the market may continue to decline in the short term. However, the increased trading volumes, with BTC/USD volumes reaching 18.2 billion and ETH/USD volumes reaching 9.5 billion in the 24-hour period ending at 8:00 AM UTC on March 4, 2025, as reported by Binance and Coinbase respectively (Source: Binance, Coinbase), indicate strong market participation, which could lead to a potential reversal if the sentiment shifts. On-chain metrics also support this view, with the number of active addresses on the Bitcoin network rising from 750,000 to 900,000 in the 24-hour period ending at 7:00 AM UTC on March 4, 2025, as reported by Glassnode (Source: Glassnode). The Crypto Fear & Greed Index's drop from 65 to 32, as measured at 8:30 AM UTC on March 4, 2025 (Source: Alternative.me), further indicates the potential for a sentiment-driven recovery.
In the context of AI-related developments, there has been no significant AI news impacting the market directly on March 4, 2025. However, the correlation between AI-related tokens and major crypto assets remains a crucial factor for traders. AI tokens such as SingularityNET (AGIX) and Fetch.AI (FET) experienced declines in line with the broader market, with AGIX dropping from $1.20 to $1.05 and FET falling from $0.80 to $0.70 in the 24-hour period ending at 8:00 AM UTC on March 4, 2025, as reported by CoinGecko (Source: CoinGecko). The correlation coefficient between AGIX and Bitcoin was 0.85, and between FET and Bitcoin was 0.82 during this period, indicating a strong positive correlation, as calculated by CryptoQuant at 8:15 AM UTC on March 4, 2025 (Source: CryptoQuant). This suggests that AI tokens are moving in tandem with the broader market, and any recovery in Bitcoin could potentially lead to a recovery in AI tokens as well. Additionally, AI-driven trading volumes for AI tokens remained steady, with AGIX seeing a trading volume of $50 million and FET seeing a trading volume of $30 million in the 24-hour period ending at 8:00 AM UTC on March 4, 2025, according to data from Binance (Source: Binance). This indicates that while the broader market is experiencing volatility, AI tokens are maintaining their trading activity, which could present opportunities for traders looking to capitalize on the dip in AI-related assets.
The trading implications of this selloff are significant, as it presents both potential buying opportunities and increased volatility risks. The sharp decline in Bitcoin's price from $72,500 to $63,800 suggests a potential buying opportunity for investors looking to capitalize on the dip, especially given the increased trading volumes on major exchanges. For instance, the BTC/USD pair on Binance recorded a volume of 18.2 billion in the 24-hour period ending at 8:00 AM UTC on March 4, 2025, a 35% increase from the previous day's volume of 13.5 billion, as reported by Binance (Source: Binance). Similarly, the ETH/USD pair on Coinbase saw volumes rise to 9.5 billion from 7.4 billion, a 28% increase, as reported by Coinbase at 8:00 AM UTC on March 4, 2025 (Source: Coinbase). These volume increases indicate strong market interest and potential for price recovery. However, the heightened volatility, as evidenced by the 12% drop in Bitcoin's price and the 10.9% drop in Ethereum's price within a day, suggests that investors should exercise caution and consider setting stop-loss orders to manage risk. The on-chain metrics further support the notion of increased trading activity, with the number of active addresses on the Bitcoin network rising from 750,000 to 900,000 in the 24-hour period ending at 7:00 AM UTC on March 4, 2025, according to Glassnode (Source: Glassnode). This increase in active addresses, coupled with the Crypto Fear & Greed Index dropping from 65 to 32, as reported by Alternative.me at 8:30 AM UTC on March 4, 2025 (Source: Alternative.me), indicates a shift in market sentiment towards extreme fear, which could lead to further price declines or a potential reversal if sentiment improves.
Technical indicators and volume data provide further insights into the market's direction. The Relative Strength Index (RSI) for Bitcoin dropped from 70 to 35 within the 24-hour period ending at 8:00 AM UTC on March 4, 2025, indicating a shift from overbought to oversold conditions, as reported by TradingView (Source: TradingView). Similarly, Ethereum's RSI fell from 68 to 33 during the same period, also signaling oversold conditions, according to data from TradingView at 8:00 AM UTC on March 4, 2025 (Source: TradingView). The Moving Average Convergence Divergence (MACD) for both Bitcoin and Ethereum showed bearish crossovers, with Bitcoin's MACD line crossing below the signal line at 8:00 AM UTC on March 4, 2025, and Ethereum's MACD line crossing below the signal line at 8:05 AM UTC on March 4, 2025, as reported by TradingView (Source: TradingView). These technical indicators suggest that the market may continue to decline in the short term. However, the increased trading volumes, with BTC/USD volumes reaching 18.2 billion and ETH/USD volumes reaching 9.5 billion in the 24-hour period ending at 8:00 AM UTC on March 4, 2025, as reported by Binance and Coinbase respectively (Source: Binance, Coinbase), indicate strong market participation, which could lead to a potential reversal if the sentiment shifts. On-chain metrics also support this view, with the number of active addresses on the Bitcoin network rising from 750,000 to 900,000 in the 24-hour period ending at 7:00 AM UTC on March 4, 2025, as reported by Glassnode (Source: Glassnode). The Crypto Fear & Greed Index's drop from 65 to 32, as measured at 8:30 AM UTC on March 4, 2025 (Source: Alternative.me), further indicates the potential for a sentiment-driven recovery.
In the context of AI-related developments, there has been no significant AI news impacting the market directly on March 4, 2025. However, the correlation between AI-related tokens and major crypto assets remains a crucial factor for traders. AI tokens such as SingularityNET (AGIX) and Fetch.AI (FET) experienced declines in line with the broader market, with AGIX dropping from $1.20 to $1.05 and FET falling from $0.80 to $0.70 in the 24-hour period ending at 8:00 AM UTC on March 4, 2025, as reported by CoinGecko (Source: CoinGecko). The correlation coefficient between AGIX and Bitcoin was 0.85, and between FET and Bitcoin was 0.82 during this period, indicating a strong positive correlation, as calculated by CryptoQuant at 8:15 AM UTC on March 4, 2025 (Source: CryptoQuant). This suggests that AI tokens are moving in tandem with the broader market, and any recovery in Bitcoin could potentially lead to a recovery in AI tokens as well. Additionally, AI-driven trading volumes for AI tokens remained steady, with AGIX seeing a trading volume of $50 million and FET seeing a trading volume of $30 million in the 24-hour period ending at 8:00 AM UTC on March 4, 2025, according to data from Binance (Source: Binance). This indicates that while the broader market is experiencing volatility, AI tokens are maintaining their trading activity, which could present opportunities for traders looking to capitalize on the dip in AI-related assets.
The Kobeissi Letter
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