The cryptocurrency market experienced a downturn on March 21, with total market capitalization decreasing by 2.5% to around $2.75 trillion. This decline followed Bitcoin's failure to maintain a recent rally to $87,000 after a speech by former President Donald Trump at the Digital Asset Summit in New York, which fell short of expectations. As profit-taking ensued, major cryptocurrencies like Ether fell below $2,000, and other altcoins such as XRP, Solana, and Cardano also saw significant losses. Over $235 million in leveraged positions were liquidated, reflecting an overleveraged bullish sentiment. The drop in crypto prices mirrors broader weakness in U.S. equities, with the S&P 500, Nasdaq, and Dow showing declines. Analysts note a shift to risk-off sentiment amid rising recession fears, impacting investor confidence. Furthermore, the total crypto market is trending in a bearish pattern, raising concerns over potential further declines, particularly if critical support levels are breached, with predictions suggesting a possible drop to $2.23 trillion.

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