The cryptocurrency market has taken a severe hit, witnessing a s/ decline of 7% and bringing its total value down to approximately $2.77 trillion. Major digital currencies, including Bitcoin, Ethereum, and XRP, are feeling the heat as investors react to a turbulent economic landscape and changing policy measures.
Bitcoin, the foremost cryptocurrency, has seen a substantial drop, now trading around $82,200. While it retains a market dominance of 58.2%.
Ethereum, the second-largest cryptocurrency, has fared even worse, reaching close to the $2,000 mark. Other significant players, such as Solana and XRP, have experienced similar declines of about 7%, reflecting the overarching negative sentiment pervading the market.
This price slump has led to extensive liquidations, particularly affecting investors who had previously bet on rising prices. In the past 24 hours, liquidations have surpassed $616 million, with long traders being hit hardest. Bitcoin alone accounted for $231 million in liquidations, highlighting the seriousness of this market sell-off.
Political rhetoric has also played a role in this downturn. Recent comments from Donald Trump regarding budget cuts and potential trade tariffs have contributed to growing economic uncertainty. On March 9, he expressed to Fox News that these measures might lead to short-term economic challenges.
As a result, investors are increasingly cautious, not just within the cryptocurrency sector but across traditional financial markets as well. Analysts have drawn parallels between Trump’s proposed policies and the aggressive anti-inflation tactics used by former Federal Reserve Chairman Paul Volcker in the 1980s. While Volcker’s approach eventually curbed inflation and paved the way for long-term economic growth, it also led to a period of financial instability.
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