The cryptocurrency market experienced a sharp downturn on March 10, with Bitcoin and major altcoins posting significant losses as traders reacted to macroeconomic uncertainty. The sell-off was triggered by recent comments from U.S. President Donald Trump, who acknowledged in a Fox News interview on March 8 that his economic policies could cause “temporary economic pain.”
His statements regarding budget cuts and new trade tariffs have fueled fears of increased market volatility, leading investors to pull back from riskier assets, including cryptocurrencies.
Bitcoin and Altcoins Take a Hit
Bitcoin (BTC), which had shown signs of stability in recent weeks, fell by 10% over the past week and is currently trading at $82,574, down nearly 4% in the last 24 hours. The decline has erased much of BTC’s recent gains, bringing it closer to its 2025 low of $78,000.
The broader cryptocurrency market followed suit, shedding 7% of its total valuation, which now stands at $2.8 trillion. Major altcoins faced even steeper losses:
- Solana (SOL) dropped 8%
- XRP (XRP) fell 6%
- Ethereum (ETH) struggled to stay above $2,000 after falling 5%
- Cardano (ADA) and Dogecoin (DOGE) plunged by nearly 8% and 9%, respectively
In total, the market downturn led to $620 million in liquidations, with long traders suffering the most, losing approximately $527 million. Bitcoin alone accounted for $241 million in liquidations.
Global Markets Also Feeling the Pressure
The impact of Trump’s policies hasn’t been limited to cryptocurrencies. The stock market is also showing signs of distress, with major U.S. tech stocks experiencing notable declines:
- Nvidia (NVDA) down 8.7% over five days
- Tesla (TSLA) plunged 12.5%
- Meta (META) declined by 7.17%
- S&P 500 fell 3.3% as of Monday morning
The Chicago Mercantile Exchange (CME) Bitcoin futures market reflected this bearish sentiment as well, opening at $82,110 on March 10, down $4,320 from the previous day’s close of $86,430. This marked the second-largest single-day decline in CME Bitcoin futures this month.
Trade War Fears Add to Market Volatility
Adding to the uncertainty, escalating trade tensions between the U.S. and China have put additional pressure on global markets. On March 4, China announced retaliatory tariffs on U.S. agricultural products, which took effect on March 10. The fear of a worsening trade war has further dampened investor sentiment.
Meanwhile, Trump’s Bitcoin reserve announcement last week has also failed to deliver the expected boost. While many traders had hoped for direct government purchases of BTC, the administration instead opted for a “budget-neutral” approach using seized crypto holdings, which left investors disappointed.
What’s Next?
Traders are now shifting their focus to key economic reports scheduled for this week, including the U.S. Consumer Price Index (CPI) on March 12 and the Producer Price Index (PPI) on March 13. These reports will provide further insight into inflation trends and could significantly influence Bitcoin’s short-term trajectory.
Notable market analysts have offered diverging predictions:
- BitMEX co-founder Arthur Hayes has warned that Bitcoin could drop to multi-month lows of $76,000.
- Crypto trader Captain Faibik pointed out that BTC’s price is currently moving within an ascending wedge pattern. If BTC breaks above this formation, it could rally to $120,000. However, if BTC drops below the pattern’s lower boundary, it could plunge further to $50,000–$55,000 in the midterm.
With rising geopolitical tensions, uncertainty around Trump’s economic policies, and critical inflation data on the horizon, the coming days could determine whether Bitcoin stabilizes or faces another steep decline.
