Crypto Crash: BTC, ETH, & SOL Plunge as Market Declines

The crypto market fell 7% today, its overall value decreasing to $2.68 trillion. Top cryptos such as Solana and XRP both fell to levels near 7%, with Ethereum falling by a deeper 8%, trading around the $2,000 level. Bitcoin, despite falling 4.97%, maintained its dominance at 60%, holding a trading level of $82,043 at the time of writing.

$616 Million Liquidated as Long Positions Take a Hit

Over the past 24 hours, market volatility led to massive liquidations amounting to $616 million, according to data from Coinglass. Long position traders faced the majority 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 close of the previous day at $86k. It was the second-biggest one-day drop in Bitcoin futures this month, following a record $10,350 drop on March 3.

The Effect of Economic Policies on the Crypto Market

The recent decline in the market was triggered by economic policy concerns after 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.

Bitcoin’s Next Moves and Market Predictions

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 greatly influence the price of Bitcoin and other cryptocurrencies. So, every crypto enthusiast must watch the crypto market daily to gain more insights to make profitable decisions.