The global cryptocurrency market shed approximately $100 billion in capitalization within hours on 18 March 2026, with Bitcoin falling 5% below the critical $70,000 level. The sharp selloff came as Federal Reserve Chair Jerome Powell signaled caution on interest rate cuts amid resilient US economic data.
Total crypto market capitalization tumbled from roughly $2.3 trillion to $2.2 trillion, marking a 4.3% single-day loss. Bitcoin traded between $65,800 and $71,000 after breaking its $70,000 support zone, now sitting 44% below its October 2025 all-time high of $126,000.
Source: Tradingview
Moreover, the Algorand Foundation announced a significant workforce reduction on March 18, 2026, cutting 25% of its staff in response to prolonged weakness in the cryptocurrency market and macroeconomic uncertainty. The decision by CEO Staci Warden affects an organization with fewer than 200 employees, translating to approximately 40-50 positions eliminated.
Why is Crypto Down Today? Federal Reserve Policy Drives Selloff
The price drop triggered a cascade of liquidations across cryptocurrency derivatives markets.
More than $360 million in leveraged positions were wiped out, with $324 million coming from long contracts alone. Some reports indicated up to 240,000 positions were liquidated, with total losses potentially reaching $800 million.
Ethereum declined 5.3% to approximately $3,200, now 62% below its peak, while XRP fell 4% to $1.96. The synchronized decline across digital assets reflected broad risk-off sentiment among investors.
Market analysts point to Federal Reserve policy uncertainty as the primary catalyst for the decline. Strong U.S. economic data released last week dampened expectations for aggressive rate cuts in March 2026, with federal funds rates now expected to settle in the 3.5-4% range rather than the more accommodative levels markets had anticipated.
"The Fed's approach to monetary policy remains one of the most significant factors" influencing crypto prices, according to analysis from Intellectia.ai. Adding to uncertainty, President Trump signaled that advisor Kevin Hassett was under consideration for Federal Reserve Chair, injecting additional political dynamics into monetary policy expectations.
Meanwhile, Crypto Layoffs Continue
The Algorand Foundation announced a significant workforce reduction on March 18, 2026, cutting 25% of its staff in response to prolonged cryptocurrency market weakness and macroeconomic uncertainty. The decision by CEO Staci Warden affects an organization with fewer than 200 employees, translating to approximately 40-50 positions eliminated.
The timing is striking: the layoffs came just 24 hours after the SEC confirmed that ALGO is not classified as a security, one of the most positive regulatory developments in Algorand's history. This juxtaposition highlights the tension between long-term protocol progress and immediate financial pressures facing blockchain projects.
CEO Staci Warden cited the need for greater financial discipline as the primary driver behind the decision.
"A measure to respond to an uncertain macro environment and market slowdown," the foundation explained, noting that the restructured team now represents "a more sustainable foundation for executing on Algorand's technology, business, and ecosystem goals going forward."
Bitcoin correction follows a similar $100 billion wipeout in January 2026 amid US government shutdown concerns
Bitcoin may consolidate around $90,000 before a potential rebound, though short-term downward pressure persists due to liquidity depletion
The current selloff comes after mid-March, when the market surged by $103 billion to $2.57 trillion, driven by a 5.45% increase in open interest to $108.62 billion, creating overleveraged conditions that amplified the subsequent decline.
Unlike the 2022 bear market triggered by the FTX collapse, the current downturn reflects a combination of macroeconomic pressures, institutional de-risking, and structural market fragility. Open interest has crashed 58% from October 2025 peaks, exposing weak spot demand beneath derivatives-fueled rallies.