Why Is the Crypto Market Declining Today? Bitcoin Falls to $82K as Traders Exit Risk Assets Due to Macro Concerns

Over $300 million in liquidations hit the crypto markets as investors pull back from risk due to looming April policy shifts and worrisome macroeconomic indicators.

Key Points to Know:

• Bitcoin fell 3% within 24 hours, while XRP, BNB, and SOL saw declines of 4–5%.

• Crypto exchanges recorded over $300 million in liquidated long positions.

• Gold-backed tokens such as PAXG and XAUT rose amid market turbulence.

Cryptocurrency prices have seen a significant drop in recent hours, with Bitcoin (BTC) falling about 3% over the past 24 hours. Major altcoins like XRP, BNB, and SOL have declined between 4% and 5% during the same timeframe.  

The overall crypto market, as reflected by a key index, has lost approximately 3.3% of its value. This sharp decline brings BTC’s weekly performance down by 1.7%, while the broader market index has dropped nearly 5%.

In the past 24 hours, centralized cryptocurrency exchanges have seen over $300 million in long position liquidations, while short positions worth $38.8 million were also liquidated, according to market data.  

The decline seems to be part of a broader trend of traders reducing risk, as investors brace for the impact of upcoming reciprocal tariffs set to take effect on April 2. Market uncertainty increased further after core Personal Consumption Expenditures (PCE) data released on Friday exceeded expectations.

This week, consumer confidence data declined more than expected, with the index for future expectations hitting a 12-year low, falling well below levels typically linked to a recession.  

These factors have led investors to scale back their exposure to risk assets, prompting a shift toward safer investments. Recent stablecoin market reports indicate that gold-backed cryptocurrencies have benefited from this trend, pushing their total market capitalization above $1.4 billion in March.  

Gold-backed cryptocurrencies are defying the broader market downturn. While a key crypto index has dropped over 3% in the past 24 hours, tokens like PAXG and XAUT have gained 0.7%, surpassing $3,100. Year-to-date, these tokens have risen over 18%, whereas BTC has declined 12.5%, and the broader crypto index has fallen 28%.