The cryptocurrency market has been hit by a wave of sell-offs, dragging prices lower as macroeconomic uncertainty and recent remarks by U.S. President Donald Trump spooked investors.
Bitcoin Nears Yearly Low Amid Market Turmoil
Bitcoin (BTC) has erased most of its recent gains, plunging 10% over the past week. As of March 10, the leading cryptocurrency is trading at $82,574, down nearly 4% in the last 24 hours and approaching its 2025 low of $78,000. The broader crypto market has also suffered, declining by 7% to a total valuation of $2.8 trillion.
Altcoins Take a Beating
Altcoins have faced steep declines alongside Bitcoin. Over the past 24 hours:
- Solana (SOL) dropped 8%
- XRP fell 6%
- Ethereum (ETH) slid 5%, struggling to hold above the $2,000 mark
- Cardano (ADA) and Dogecoin (DOGE) tumbled nearly 8% and 9%, respectively
The sell-off triggered massive liquidations totaling $620 million, with long positions bearing the brunt at $527 million. Bitcoin alone accounted for $241 million in losses.
Tech Stocks Follow Suit
The turmoil extended beyond crypto, impacting major U.S. tech stocks. Over the past five days:
- Nvidia (NVDA) dropped 8.7%
- Tesla (TSLA) plunged 12.5%
- Meta (META) declined 7.17%
The S&P 500 also fell 3.3% as of Monday morning, reflecting broader investor concerns.
Trump’s Comments Spark Volatility
The market downturn follows remarks made by President Trump during a March 8 Fox News interview. Trump acknowledged that his economic policies could result in temporary economic pain, leading to investor unease. His dovish stance on budget cuts and trade tariffs raised fears of increased market volatility, prompting investors to move away from risk assets like cryptocurrencies.
Trade Tensions Add to Market Woes
The situation has been exacerbated by escalating trade tensions between the U.S. and China. On March 4, China announced retaliatory tariffs on U.S. agricultural goods, which took effect on March 10. The trade dispute has further weighed on investor sentiment, driving a shift towards safer assets.
More: BBVA Secures Regulatory Approval to Offer Bitcoin and Ether Trading in Spain
Bitcoin Futures See Sharp Decline
Bitcoin futures on the Chicago Mercantile Exchange (CME) reflected the bearish sentiment, opening at $82,110 on March 10—down $4,320 from the previous day’s close of $86,430. This marks the second-largest single-day decline in CME Bitcoin futures this month.
Disappointment Over U.S. Bitcoin Reserves Announcement
Adding to the market pressure, Trump’s recent announcement regarding U.S. Bitcoin reserves fell short of expectations. The government clarified that while it holds digital assets forfeited in criminal or civil proceedings, it does not plan to acquire additional Bitcoin beyond what has already been obtained through these processes.
Data from Arkham indicates that the U.S. government owns approximately 56 ether tokens valued at nearly $119 million, but there was no mention of holdings in XRP, Solana, or Cardano.
Investor Reaction: ‘Not What the Market Wanted’
The absence of immediate Bitcoin purchases by the government disappointed investors who had hoped for institutional support to drive prices higher.
“It is good news, but not what the market wanted in the short term,” said Steven Lubka, head of private clients and family offices at Swan Bitcoin. “People were hoping for near-term buy pressure.”
While Trump’s order instructs Treasury and Commerce officials to develop budget-neutral strategies for acquiring additional Bitcoin, it specifies that these strategies must not impose incremental costs on American taxpayers. For now, there are no plans to expand the government’s crypto holdings beyond those obtained through forfeitures.
