Bitcoin's Decline Triggers Altcoin Avalanche: PI, Dogecoin, and XRP Suffer Heavy Losses

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Bitcoin's Bear Market Tightens Grip

Bitcoin (BTC) prices continued to decline on Sunday afternoon, hovering around $82,803 per unit by 3:30 PM on March 9. With a 4.4% drop in 24 hours and an 11.2% weekly loss, the digital asset market faces dual headwinds: unclear information about potential trade tariffs and growing inflationary concerns in the global economy.

The BTC/USD 1-hour chart (Bitstamp, March 9, 2025) reflects renewed volatility in the sector, mirroring broader financial uncertainty. Bitcoin's trading patterns—historically indicative of Monday stock market struggles—once again set grim expectations. Trading volume rose to $25.06 billion since morning, but this uptick signals persistent sell-offs, resulting in overall sluggish activity.

Binance, OKX, and Crypto.com emerged as the most active platforms for Bitcoin trading, dominating exchange activity. The crypto derivatives market saw $48.72 billion in liquidated positions over 24 hours, affecting 199,301 traders. Bullish BTC positions lost $134 million, while Ethereum longs evaporated $88.13 million.

Top Cryptocurrencies Hit Hard

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FAQ: Understanding the Market Downturn

Q: Why is Bitcoin’s price dropping?
A: The decline stems from macroeconomic uncertainty, including inflationary pressures and geopolitical trade risks.

Q: Which altcoins are most affected?
A: Meme coins like DOGE and smaller-cap projects (PI, JASMY) experienced sharper drops due to lower liquidity.

Q: Should investors buy the dip?
A: Assess risk tolerance and market trends—volatility may persist. Diversification and long-term strategies are key.

Q: How do derivatives impact spot prices?
A: Mass liquidations can exacerbate downward momentum, as seen in the $48.72 billion wipeout.


Key Takeaways

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