The cryptocurrency market has experienced a sharp downturn, with its total value plunging by 7% to approximately $2.77 trillion.
Leading digital assets, including Bitcoin, Ethereum, and XRP, have faced significant losses as investors react to the broader economic landscape and shifting policy measures.
Bitcoin, the largest cryptocurrency, has dropped considerably and is now trading at around $82,200.
Despite maintaining a market dominance of 58.2%, it has not been spared from the market’s overall decline.
Ethereum, the second-largest cryptocurrency, has taken an even steeper hit, falling close to the $2,000 mark.
Other major cryptocurrencies, including Solana and XRP, have also declined by approximately 7%, reflecting the broader negative sentiment in the market.
The price slump has triggered substantial liquidations, particularly impacting investors who had bet on continued price appreciation.
Market data shows that total liquidations in the past 24 hours have exceeded $616 million, with long traders taking the biggest hit.
Bitcoin alone accounted for $231 million in liquidations, underscoring the severity of the market sell-off.
Recent remarks by Donald Trump have been cited as a key factor fueling economic uncertainty.
On March 9, Trump told Fox News that his proposed budget cuts and new trade tariffs could lead to short-term economic hardship.
The possibility of additional market volatility has made investors cautious, not just in the crypto space but also across traditional financial markets.
Some analysts have drawn comparisons between Trump’s policies and the aggressive anti-inflation strategies implemented by former Federal Reserve Chairman Paul Volcker in the 1980s.
While Volcker’s measures ultimately helped curb inflation and set the stage for long-term economic growth, their immediate effect was a period of financial market instability.
Investors fear that a similar scenario could unfold, potentially disrupting the cryptocurrency market even further.
