Why is Crypto Crashing? Bitcoin and Altcoins Face Major Losses Amid Global Tensions

Why is Crypto Crashing? Trump’s Economic Comments Trigger Sell-Off

Why is Crypto Crashing? The cryptocurrency market experienced a significant downturn on March 10, 2025, with widespread sell-offs sending prices plummeting. This market shift follows unsettling comments from U.S. President Donald Trump during a March 8 interview on Fox News, where he acknowledged that his economic policies could cause temporary economic pain. His dovish remarks on potential budget cuts and trade tariffs have raised concerns about increased market volatility, leading investors to move away from high-risk assets like cryptocurrencies.

Bitcoin Struggles Amidst Market Pressure

Bitcoin (BTC) has been hit hardest, falling 10% over the past week, wiping out most of its recent gains. As of March 10, Bitcoin is trading at $82,574, down nearly 4% in the last 24 hours, and is approaching its 2025 low of $78,000. The broader cryptocurrency market also saw a steep decline, dropping 7% and bringing the total market capitalization to $2.8 trillion.

Altcoins Experience Heavy Losses

Altcoins have also suffered significant losses in the wake of the broader market sell-off. Over the past 24 hours, Solana (SOL) dropped by 8%, while XRP fell 6%, and Ethereum (ETH) experienced a 5% drop, struggling to stay above the critical $2,000 level. Additionally, Cardano (ADA) saw a 5.39% decline, while Dogecoin (DOGE) dropped by nearly 8%. These declines are indicative of a broader market shift away from riskier assets, as investors turn cautious amid growing economic uncertainty.

$620 Million in Liquidations Amid Market Crash

The sell-off resulted in significant liquidations across the market, with a total of $620 million in liquidations recorded. Long positions bore the brunt of the pain, accounting for $527 million of the total liquidations. Bitcoin alone accounted for a massive $241 million in losses. These liquidations reflect heightened trader fear, as the market struggles to find stable ground amid the ongoing volatility.

Tech Stocks Face Significant Losses

The wider financial market also suffered amid growing concerns. Major U.S. tech stocks took significant hits in the past week. Nvidia (NVDA) dropped by 8.7%, while Tesla (TSLA) fell by 12.5%, and Meta (META) dropped 7.17%. The S&P 500 index also reflected the broader investor concerns, falling 3.3% as of March 10, 2025. These stock market declines further highlight the growing caution among investors as they brace for potential economic turbulence.

Bitcoin Futures See Major Drop

Bitcoin futures on the Chicago Mercantile Exchange (CME) also reflected the market’s nervousness. The March 10 Bitcoin futures opened at $82,110, down $4,320 from the previous day’s close of $86,430. This marks the second-largest single-day drop in CME Bitcoin futures this month. The significant drop in Bitcoin futures indicates a growing sense of uncertainty in the market, with traders becoming increasingly wary of potential further declines.

Trump’s Economic Policies and Escalating Trade Tensions

The downturn follows U.S. President Trump’s comments about economic pain and his trade policies, particularly regarding trade tariffs. On March 4, 2025, China announced retaliatory tariffs on U.S. agricultural products, which are set to take effect on March 10. The tariffs are seen as a response to the latest round of U.S. import hikes, further exacerbating concerns about a worsening trade war. As these tensions rise, market sentiment has become more bearish, leading to a shift away from risk assets like cryptocurrencies.

In addition to the trade tensions, Trump’s Bitcoin reserve announcement last week failed to meet market expectations. The absence of provisions for direct Bitcoin buying left traders disappointed, especially those who had hoped for stronger institutional support for the cryptocurrency market.

Looking Ahead: Key Economic Data to Impact Market Direction

Traders are now looking toward upcoming economic data to help clarify the market’s direction. Notably, the U.S. Consumer Price Index (CPI) report on March 12 and the Producer Price Index (PPI) on March 13 will be closely watched. These economic indicators could provide valuable insights into inflation trends and may play a pivotal role in shaping market sentiment in the short term.

Potential Bitcoin Price Movements: The Wedge Pattern

As for Bitcoin, several analysts are forecasting different potential price movements based on chart patterns. Arthur Hayes, co-founder of BitMEX, has speculated that Bitcoin could correct to multi-month lows, potentially reaching the $76,000 range if the market continues to slide. On the other hand, trader Captain Faibik has pointed out that Bitcoin’s price is currently trapped in an ascending wedge pattern. If Bitcoin breaks above this pattern, it could rally to $120,000. However, if it drops below the lower boundary of the wedge, he warns that Bitcoin could experience further declines to $50,000–$55,000 in the mid-term.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.