Bitcoin prices drop again to $80k, pointing to Trump’s economic policy changes. Bitcoin price drop at the time of writing; BTC is at $82k.
The crypto market fell 7% today, its overall value decreasing to $2.68 trillion. Top crypto markets such as Solana and XRP fell nearly 7%, with Ethereum falling by a more resounding 8%, trading at around the $2,000 level. Despite falling 4.97%, Bitcoin maintained its dominance at 60%, holding a trading level of $82,043 at the time of writing.
$616 Million in Liquidations as Bitcoin
Bitcoin price drop According to Coinglass data, market volatility led to massive liquidations amounting to $616 million over the past 24 hours. Long-position traders faced most of these losses, accounting for $540.49 million in liquidations. Bitcoin alone contributed significantly to this trend, with $231 million being liquidated from its positions.
Adding to the market volatility, Bitcoin futures on the Chicago Mercantile Exchange (CME) opened at $82k on March 10, down by $4,320 from the previous day’s close at $86k. It was the second-biggest one-day drop in Bitcoin futures this month, following a record $10,350 drop on March 3.
Trump’s Economic Policy Impact
The recent market decline was triggered by economic policy concerns triggered by a statement by U.S. President Donald Trump during a Fox News interview on March 9. Trump admitted his economic policies, including budget cuts and trade tariffs, would result in short-term economic suffering. This admission triggered fear among investors, who became cautious when investing in cryptocurrency and other financial markets.
Some crypto market observers compared this with the harsh anti-inflationary policies of previous Federal Reserve Chairman Paul Volcker in the 1980s. While Volcker’s policies managed to control inflation and pave the way for long-term economic growth, they first created colossal market turbulence.
Hayes Warns Bitcoin Decline
BitMEX co-founder Arthur Hayes cautioned that Bitcoin could fall further and tested the level at $78k. He added that most Bitcoin options are around $70k to $75k, and if Bitcoin remains there, it will trigger further market realignments.
Investors and traders are now keenly monitoring future economic releases, such as the U.S. Consumer Price Index (CPI) on March 12 and the Producer Price Index (PPI) on March 13, to analyze the crypto market fluctuations. These releases will significantly influence the price of Bitcoin and other cryptocurrencies. So, every crypto enthusiast must watch the crypto market daily to gain more insights and make profitable decisions.
Final thoughts
The article gives a snapshot of the unstable situation in the cryptocurrency market, specifically the price movements of Bitcoin, the general market sell-off, and the possible impact of political and economic considerations. Bitcoin plummeted to $80k, but even with the 4.97% decline, it still held its position as the market leader, trading at $82,043 at the time of writing. This confirms Bitcoin’s volatility but also its relative robustness against other cryptos like Ethereum and Solana, whose falls were sharper.
A sharp $616 million worth of liquidations, which the longs dominated, was a record of short-run market volatility. The article outlines the risk involved in speculating in the crypto market, wherein price fluctuations easily translate to deep liquidations for leveraged holders.
The market downturn was precipitated by President Trump’s comments regarding the possible economic pain brought about by his economic policies, such as budget reductions and trade tariffs. This triggered a wave of doubt among investors, not only in crypto but also in other financial markets. The analogy with Paul Volcker’s policies introduces a historical element, revealing that economic policies, though they lead to short-term volatility, can ultimately bring long-term stability.
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