How Low Can Stocks & Crypto Crash? March 10th, 2025
Buckle Up: The Markets Are Testing Your Nerves—Here’s What You Need to Know
Bottom Line: My golden rule of money? Never let it tangle with your emotions. This isn’t a doomscroll—it’s a wake-up call to show you the near-worst-case scenario for stocks and crypto. Why? So you can plan your financial future with a cool head, not a racing pulse.
The US stock market is history’s ultimate wealth-building beast. Crypto? It’s minted millionaires from early believers. I want you cashing in on both—without choking on rookie mistakes. Fact: Over 90% of the time, investors who try to “time” the market end up poorer than if they’d just stuck to their guns. This is about dodging that trap.
Let’s dive into the carnage—here’s how the big dogs are faring in 2025 so far:
- DOW: +1% (after a -3% gut punch last week)
- S&P 500: -2% (-4% last week)
- Nasdaq: -6% (-4% last week)
Friday’s late rally was a Band-Aid on a bloodbath—the worst week since last September. The Nasdaq’s officially in correction territory (down 10%+ from its peak), and only the DOW’s clinging to green for the year. Economic vibes? Grim.
The ADP jobs report tanked expectations. The government’s numbers weren’t much cheerier—weak growth, ugly revisions to past “wins” (a Biden-era habit), and unemployment creeping to 4.1%. Oh, and fewer people are even bothering to look for work. Then there’s the tariff circus: Trump’s trade war redux has investors and eggheads scrambling to decode the fallout—and the retaliatory jabs coming our way.
No shock, then, that the market’s hit the skids after years of epic gains. The Fed’s GDPNow tracker? It’s screaming -2.4% growth for Q1—down from a rosy +2% just weeks ago. That’s a gut check. Could it nudge the Fed to slash rates sooner than their crystal ball predicted? Maybe.
Now, crypto—oh boy.
Digital coins are bleeding for a seventh straight week, post-Trump-election euphoria long gone. A brief midweek pop came when Trump hyped a “strategic crypto reserve” starring Bitcoin, Ether, XRP, Solana, and ADA. Spoiler: It fizzled fast.
- Bitcoin: -3% last week, -10% YTD
- Ether: -36% YTD (ouch)
- BitwiseETF (Top 10 cryptos): Up a hair last week, still -17% YTD
The “risk-off” mood is hammering the wildest bets hardest. Crypto’s got no fundamentals to lean on—I can’t value it beyond hype. Stocks, though? They’ve got bones. Let’s break down the S&P 500:
- Current P/E: 28.84
- Historic Avg. P/E: 16.13
Translation: On earnings alone, the downside risk’s a nasty 44% drop from here—slightly better than last week’s 46% as prices outpaced the fundamentals’ slide. This is the diciest valuation cycle since April 2021, when inflation first reared its head. Last time we saw P/E’s this bloated? The pandemic frenzy—and before that, the ‘08-‘09 meltdown.
So, What’s Your Move?
If a 44% dip wouldn’t derail your life, you’re probably golden. If it would? Time to call a pro and build a plan that doesn’t leave you sweating bullets—or broke.
The markets don’t care about your feelings. Don’t let them hijack your wallet.