Why Is Crypto Crashing and Will It Recover: Right Time to Invest?

Why Is Crypto Crashing: Robert Kiyosaki Crash Predictions Come True?

The global crypto market is facing a severe downturn, with the total market capitalization at $2.65 trillion, marking a 2.27% decline over the last 24 hours. Despite this, the trading volume has surged by 39.31% to $156.86 billion, indicating significant market activity. Bitcoin's dominance has increased to 61.18%, showing stronger investor interest compared to other cryptocurrencies.

Why Is Crypto Crashing and Will It Recover Soon?  

The recent crypto market crash is being compared to past financial crises. Robert Kiyosaki’s crash predictions have once again come true, as financial markets see a steep decline. The Nasdaq recorded its worst drop since 2022, losing $1.7 trillion, while Bitcoin briefly fell to $76,000 and Ethereum dropped below $1,800.

Source: X

Kiyosaki attributes this crash to factors such as:

• Debt bubbles and pension plan failures.

• Rising inflation concerns.

• Institutional sell-offs.

Despite the market turmoil, he advises against panic selling and suggests that this is a wealth-building opportunity. Whales are accumulating assets, indicating a possible market recovery.

Trump’s Tariffs and FTX Token Unlock Add Pressure

One major reason behind the market crash is the broader economic uncertainty. Former U.S. President Donald Trump's proposed trade tariffs have raised fears of higher inflation and slower economic growth, making investors cautious. This has negatively impacted not just stocks but also the crypto market. 

Additionally, the FTX estate has been offloading large amounts of Solana since March 1, increasing supply and pushing prices down. Trump's crypto reserve announcement on March 2 also failed to spark investor confidence. With weak buying interest and growing selling pressure, crypto is struggling, contributing to the overall market downturn.

US CPI Data and FOMC Meeting Impact

The upcoming FOMC meeting on March 18-19 is expected to influence the market significantly. Current predictions show a 97% probability that interest rates will remain unchanged, which could sustain market volatility.

Additionally, the US CPI data crypto impact will be crucial. Analysts predict a 0.3% rise in core inflation when the data is released on March 12. If inflation remains high, it may discourage investors and lead to further drops in crypto prices.

Fear and Greed Index Suggests Recovery

The fear and greed index crypto currently sits at 24 (Extreme Fear), reflecting heightened investor anxiety. However, this could signal a buying opportunity as historically, extreme fear has been followed by market rebounds.

With the index gradually increasing, sentiment might be shifting toward recovery.

Will Crypto Recover or Rise Again?

Market analyst Ali notes that capital inflows into crypto have reached $8.94 billion, suggesting renewed investor confidence. 

Source: X

However, despite these inflows, Bitcoin has fluctuated, currently trading around $68K, down from its peak of $74K. The 30-day capital outflows have slowed, indicating reduced selling pressure.

If the Federal Reserve cuts interest rates, it could boost investor confidence, leading to a market recovery. However, if rates remain the same, volatility may persist.

Conclusion

While the crypto crash today has caused panic among investors, indicators such as whale accumulation, slowed sell-offs, and capital inflows suggest that a recovery is on the horizon. If macroeconomic conditions improve and institutional interest remains, crypto could recover in 2025, making this downturn a potential investment opportunity rather than an end to the market.