Bitcoin’s value took a sharp plunge late Sunday night, dropping to $80,052 a decline of roughly 7% over the past 24 hours—amid growing uncertainty over U.S. President Donald Trump’s economic policy announcements. At press time, Bitcoin was trading near $82,200, while the broader cryptocurrency market saw its total valuation fall by 7% to approximately $2.77 trillion.
The downturn was not limited to Bitcoin. Major digital currencies, including Solana and XRP, also recorded losses of about 7%, and Ethereum experienced an 8% decline, trading close to the $2,000 level. This widespread drop across the crypto sector triggered significant liquidations. Data from Coinglass indicated that liquidations reached nearly $616 million in the past day, with long positions shouldering most of the losses—Bitcoin alone accounting for $231 million.
Adding to the volatility, Bitcoin futures on the Chicago Mercantile Exchange (CME) opened at $82,110 on March 10, marking a $4,320 drop from the previous day’s close of $86,430. This follows a record plunge of $10,350 on March 3, which was noted as the second-largest one-day decline for CME Bitcoin futures this month.
Market instability intensified following President Trump’s remarks during a Fox News interview on March 9. Trump warned that his administration’s economic policies, including significant budget cuts and increased trade tariffs, would bring “temporary economic pain.” These comments have fueled investor apprehension, drawing comparisons to the turbulent anti-inflation measures implemented by former Federal Reserve Chairman Paul Volcker in the 1980s—measures that, while eventually successful, initially triggered market instability.
Crypto market observers are cautioning that further declines are possible. Arthur Hayes, co-founder of BitMEX, noted that many Bitcoin options are currently priced between $70,000 and $75,000, suggesting that if Bitcoin falls into this range, volatility could intensify, potentially driving the price down to around $78,000.
Investors are now keeping a close eye on upcoming economic data, including the U.S. Consumer Price Index (CPI) due on March 12 and the Producer Price Index (PPI) scheduled for March 13. These reports are expected to influence market sentiment further.
In related developments, Dan Hughes, founder of the decentralized finance platform Radix, reported a significant shift in liquidity during the launch of Trump Coin, as investors sold off other crypto assets in a rush driven by FOMO. Meanwhile, Solana’s challenges have been compounded by a series of memecoin scams and investor capital outflows exceeding $485 million in February, with funds migrating towards Ethereum, Arbitrum, and the BNB Chain, reflecting a broader search for safety in a turbulent market.
As the cryptocurrency sector continues to navigate these uncertainties, industry participants are bracing for additional volatility amid the interplay of political developments and shifting investor sentiment.
