Altcoin Bloodbath: PEPE, ADA, XLM, SOL Suffer Major Losses – BlockNews

• Crypto Market in Turmoil – Bitcoin (BTC) and Ethereum (ETH) are sinking, with BTC dropping from $84,500 to $81,000 and ETH struggling below $2,000. Altcoins like PEPE, ADA, XLM, and SOL have suffered major losses, wiping out $1 trillion from the market.
• Fear Dominates Investor Sentiment – The Crypto Fear and Greed Index has plunged to 25, signaling extreme fear. Trade war concerns and economic instability are fueling uncertainty, causing investors to stay on the sidelines.
• Fed Decision Could Be a Turning Point – All eyes are on the Federal Reserve’s upcoming meeting. If policymakers hint at aggressive rate cuts, it could trigger a recovery for altcoins. But if they maintain a cautious stance, the market downturn may continue.

A brutal crypto crash is underway, sending shockwaves through the market. Bitcoin (BTC) has tumbled hard, slipping from this week’s high of $84,500 to around $81,000, while Ethereum (ETH) remains trapped under $2,000, unable to shake off the selling pressure.

But it’s not just the giants taking hits. Altcoins are getting crushed.

Altcoin Carnage: PEPE, ADA, XLM, SOL See Billions Wiped Out

Pepe (PEPE), once a meme coin darling, has collapsed over 75% from its peak last December. The fallout? A staggering $7 billion evaporated, dragging its market cap below $3 billion.

Cardano (ADA) isn’t faring much better, now down to $0.70 from its 2023 high of $1.32. Stellar (XLM) and Solana (SOL) have also nosedived, caught in the same bearish wave.

In total? A jaw-dropping $1 trillion has been wiped out from the crypto market, leaving investors rattled and liquidations piling up.

Crypto Fear and Greed Index Plunges, Investors on Edge

Why this massive downturn? Simple—fear is gripping the market.

The crypto fear and greed index has plunged into the fear zone, now sitting at 25, while the altcoin season index has collapsed to just 20.

Historically, when fear dominates, buyers hesitate, leading to prolonged selling pressure. The opposite happens when greed takes over—FOMO kicks in, and prices explode.

But right now? Fear is winning.

Trade Wars and Recession Fears Add to the Panic

Beyond market sentiment, global economic concerns are fueling the sell-off.

Donald Trump’s new round of tariffs—targeting Canada, Mexico, and China—has investors on edge. Some analysts fear these policies could tip the economy into a recession, triggering further stock market corrections.

The Nasdaq 100 is already in a correction phase, signaling broader market distress. And when traditional markets falter, riskier assets like crypto tend to bleed even harder.

Federal Reserve Decision Looms—Will It Be a Game-Changer?

Adding to the chaos, all eyes are now on the Federal Reserve.

Investors are bracing for the second Fed meeting of the year, a key event that could determine crypto’s next big move.

While the Fed isn’t expected to raise or lower interest rates immediately, its dot plot projections and Jerome Powell’s statements will be critical.

A dovish stance—hinting at more rate cuts than expected—could be a lifeline for altcoins like XLM, ADA, PEPE, and SOL.

But if Powell sticks to his “no rush to cut rates” narrative? The bleeding might not be over yet.

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Final Thoughts: Where Does Crypto Go From Here?

The crypto market is in panic mode, but these crashes have historically set the stage for major rebounds.

Will the Federal Reserve throw crypto a lifeline? Or will global economic fears push markets even lower?

For now, investors are on edge, waiting for the next move.