The global cryptocurrency market has suffered a sharp downturn, shedding 7% of its total value to approximately $2.77 trillion. Leading digital assets, including Bitcoin, Ethereum, and XRP, have experienced steep losses as investors react to economic uncertainty and shifting policy measures.
Bitcoin, the world’s largest cryptocurrency, has plunged to around $82,200, despite maintaining a dominant 58.2% market share. Ethereum, the second-largest digital asset, has taken an even steeper hit, sliding toward the $2,000 mark. Other major cryptocurrencies, such as Solana and XRP, have also fallen by approximately 7%, reflecting widespread bearish sentiment.
The price slump has triggered mass liquidations, dealing a significant blow to long traders. Market data reveals that total liquidations in the past 24 hours have surpassed $616 million, with Bitcoin alone accounting for $231 million in losses.
Economic uncertainty has been further fueled by recent remarks from former U.S. President Donald Trump. Speaking to Fox News on March 9, Trump warned that his proposed budget cuts and new trade tariffs could cause short-term economic hardship.
Analysts have drawn parallels between Trump’s policies and the aggressive anti-inflation strategies of former Federal Reserve Chairman Paul Volcker in the 1980s. While Volcker’s measures ultimately curbed inflation and paved the way for long-term economic stability, they initially triggered significant market turmoil. Investors now fear that a similar scenario could unfold, adding to volatility in both the crypto and traditional financial markets.
With caution gripping the market, all eyes remain on upcoming economic developments and their potential impact on digital assets.
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