Crypto Market Crash: $800M Wiped Out as BTC, ETH & XRP Drop!
Posts Cryptocurrency Market Crash: $800 million disappears at the prices of BTC, ETH and XRP Drop! Appear first Coinpedia Fintech News
The cryptocurrency market took a huge hit on March 4, losing $800 million in value as prices fell. After briefly surpassing $3 trillion, the total market cap fell 9% to $27.7 trillion, and trading volume also fell 14% to $177 billion. Bitcoin, Ethereum and XRP initially jumped, but the excitement quickly disappeared after Trump announced plans for the U.S. crypto reserve. New tariffs on Mexico and Canada have added pressure, leading to market-wide sell-offs and remind investors how sensitive cryptocurrencies are still changing economically.
Whale movement surges after Trump’s announcement
Interestingly, while cryptocurrencies are increasing throughout, large holders (often called whales) transfer a large amount of cryptocurrencies into exchanges. That’s after that after Trump announced plans to include other crypto assets in his crypto reserve plan. According to CryptoFuant, the hourly inflow of XRP soared to 193 million tokens, mainly from wallets that execute transactions of more than 1 million XRP. Bitcoin soared from a typical 500-1,000 BTC to an astonishing 6,739 BTC per hour. Meanwhile, Ethereum saw a similar pattern, sending nearly 300,000 ETH to the exchange in an hour.
Why is exchange inflow important?
It usually indicates sales pressure when an institution or large investor transfers assets to an exchange. Most long-term investors hold it in refrigeration, which means a large shift toward exchange is usually before the sell-off. This massive inflow coincides with price fluctuations across the market, suggesting that traders may use Trump-induced rally to unload assets.
Bitcoin demand declines – what is next?
Crypto analysts point out that despite the short price, actual point demand is still weak. The obvious demand for Bitcoin has been a key indicator for tracking the balance between new mining coins and existing supplies since the end of 2024. This trend has promoted demand to contract for the first time since September 2024, raising concerns about Bitcoin’s ability to maintain rallies.
Retail accumulation has also slowed since November, further reducing buying pressure. Without new capital entering the market, it will be difficult to maintain the rising momentum of crypto prices.
Can Trump’s pro-Cretto stance revitalize the market?
Trump’s support for cryptocurrencies has sparked a buzz over the new rules, with big investors joining, but market reactions suggest that traders are still uncertain. If more people don’t start buying, prices can be hard to stay up late even in all the excitement around the U.S. crypto reserve program. Now, investors are waiting for whether the move will lead to long-term growth or more price volatility.
