Bitcoin took a sharp tumble on March 10, falling to $80,052—a 7% decline in just 24 hours. As of now, BTC has slightly rebounded to around $82,200, but uncertainty continues to weigh on the crypto market.
The broader cryptocurrency market also suffered, shedding 7% of its value and dropping to $2.77 trillion. Solana (SOL) and XRP followed Bitcoin’s decline, each losing around 7%, while Ethereum (ETH) dropped 8%, briefly trading near $2,000. Despite the sell-off, Bitcoin’s dominance in the market remained steady at 58.2%.
Over $600 Million in Liquidations as Market Uncertainty Rises
The sudden downturn triggered widespread liquidations, with $616 million wiped out across crypto futures positions, according to Coinglass data. Long traders bore the brunt of the losses, accounting for $540 million in liquidations, with Bitcoin alone seeing $231 million in forced sell-offs.
Adding to the bearish sentiment, Bitcoin futures on the Chicago Mercantile Exchange (CME) opened at $82,110, down $4,320 from the previous day’s close of $86,430. This marked the second-largest single-day plunge for CME Bitcoin futures this month, following a $10,350 drop on March 3.
Trump’s Economic Policies Shake Market Confidence
The sell-off appears to be tied to growing concerns over President Donald Trump’s economic policies. In a March 9 interview with Fox News, Trump acknowledged that his administration’s proposed budget cuts and trade tariffs would likely cause short-term economic pain before stabilizing the economy.
His comments have spooked investors, with many comparing the situation to the aggressive anti-inflation policies of former Federal Reserve Chairman Paul Volcker in the 1980s. While Volcker’s measures eventually controlled inflation and led to long-term growth, they initially caused severe economic instability—a scenario some investors fear could repeat itself under Trump’s policies.
What’s Next for Bitcoin? Analysts Predict Further Declines
Arthur Hayes, co-founder of BitMEX, has warned that Bitcoin could drop further, possibly testing the $78,000 level in the short term. He pointed out that a significant number of Bitcoin options contracts are priced between $70,000 and $75,000, meaning if BTC falls into this range, increased volatility could follow.
Traders are now keeping a close eye on two major economic reports this week:
- March 12: U.S. Consumer Price Index (CPI) data
- March 13: U.S. Producer Price Index (PPI) data
These reports will offer insights into inflation trends and economic stability, which could influence Bitcoin’s next move. If inflation remains high, it could pressure the Federal Reserve to maintain restrictive monetary policies—potentially adding more downward pressure on crypto markets.
For now, Bitcoin’s recovery remains uncertain, and market sentiment hinges on upcoming economic data and policy updates.
