Why is Crypto Market Down Today ? When Will it Recover?
Another Sunday sell-off has entered the cryptocurrency market, with Bitcoin (BTC) approaching its 2025 retest, below $78,000. Bitcoin has dropped more than 11% over the past week, removing most of its previous earnings. Currently, it is trading at $82,176, down more than 4% in the past 24 hours.
The overall cryptocurrency market fell 7% to a valuation of $2.77 trillion. Both Solana and XRP lost 7%, while Ethereum fell 8% to nearly $2,000. Cardano (Ada) and Dogecoin (Doge) are also even more powerful, down by nearly 7% and 9% respectively.
The market decline has resulted in a liquidation of $616 million in the past 24 hours, with a high hit rate of $540 million in the long position. Bitcoin alone lost $231 million.
Trump says there may be some interference
Donald Trump addressed the potential impact of his policies, including tariffs and budget cuts, during a Fox News appearance on Sunday. When asked about the impact, he acknowledged that there might be some short-term disruptions, but emphasized the long-term vision behind his approach.
“There may be some disruption. China has a 100-year plan and we focus on quarterly results. What we are doing is laying the foundation for the future,” he said.
Trump’s approach compared to former Fed chairman
Trump’s comments, known as “Volckering” on social media, compared his attitude towards former Fed chairman Paul Volcker in the 1980s. Volcker raised interest rates to extreme levels to combat sustained inflation, fully aware that this would trigger a severe recession. His tough measures ultimately undermined inflation and laid the foundation for long-term economic growth. Comparisons show that Trump’s policies, while now destructive, may bring long-term benefits.
The recent decline in Bitcoin comes as trade tensions between the United States and China will worsen on Monday, as Beijing imposed tariffs on U.S. agricultural goods in response to President Trump’s latest rate hike. This trade war has created significant market uncertainty.
Bitcoin revisits lower levels!
Bitmex co-founder Arthur Hayes warned that Bitcoin could drop further and could revisit the $78,000 level. He noted that many bitcoin options are priced between $70,000 and $75,000, which could create more volatility if the price is transferred to that range.
On Friday, Fed Chairman Jerome Powell said the central bank would remain cautious about interest rates when assessing the impact of Trump’s policy. His comments follow the weak non-agricultural wage rate in the U.S. and expect a federal investigation to lower at least three taxes this year.
Traders are now focusing on key economic reports for the week, such as the U.S. Consumer Price Index on March 12 and the Manufacturer Price Index on March 13. These may affect Bitcoin’s next move.
