Bitcoin, the world's leading cryptocurrency, has recently plummeted to its lowest price in nearly four months amid rising trade tensions between the United States and China. On March 10, 2025, Bitcoin hit the alarming mark of around 80,200 USD, representing more than a 7% drop over the past 24 hours, with some reports indicating prices as low as 80,052 USD. This marked the first time Bitcoin had fallen below the 90,000 USD threshold since late last week, illustrating a significant downturn for the digital currency.
During this tumultuous period, the broader cryptocurrency market has also faced major corrections. On the same day, Ethereum saw its value decrease by over 5%, dropping trends below its previous 2,000 USD milestone. Other altcoins such as XRP and Solona logged declines of around 6-8%, and memecoin Dogecoin experienced one of the steepest declines, losing 8.5% and sliding down to 0.174 USD, its lowest since November 2024.
The rapid decline followed new developments on the international trade front. Beijing announced it would impose tariffs on some U.S. agricultural products as retaliation for President Donald Trump's recent increases on import taxes. This move has heightened uncertainties across the market, leading to widespread anxiety among investors. According to analysts, the current market adjustment seems partially motivated by fears surrounding the trade war, which has created worries about the global economic outlook.
Marking this concern, Federal Reserve Chairman Jerome Powell recently reaffirmed his cautious stance on interest rates, especially as the effects of Trump's policies become more pronounced. He emphasized the need for the Federal Reserve to evaluate the economic impacts of these changes closely. This caution suggests investors are grappling with the fallout from new tariffs, heightening volatility across all markets, including cryptocurrencies.
Overall, the cryptocurrency ecosystem is reflecting the apprehensive sentiments echoed by traditional financial markets. According to statistics, the dominance of Bitcoin—its market capitalization relative to the total cryptocurrency market—has seen significant growth, reaching 64.29% on March 10, 2025, the highest level recorded since January 2021. This suggests investors increasingly favor Bitcoin as the market faces turbulence, seeking refuge within the relative stability of the leading cryptocurrency.
Adding to the turmoil, the derivatives market reported approximately 529.69 million USD of liquidated positions, primarily from buyers caught off-guard by the sudden downturn. Overall, the total market capitalization of cryptocurrencies has also experienced dramatic declines, plummeting to about 2.8 trillion USD after peaking at 3.8 trillion USD only last December, showcasing how drastically market sentiment has shifted.
Investors' fears have prompted them to look for safe havens, with gold prices surging to record levels. The shift toward gold reflects increasing concerns over economic recession, as Trump's new tariffs are seen as potentially damaging to the economy. Yet, contradictory opinions have emerged from finance officials, including U.S. Commerce Secretary Brian Krassenstein, who assured the public during recent media appearances, "There's going to be NO RECESSION in America." This conflicting information only adds to market anxieties.
The establishment of the U.S. strategic Bitcoin reserve fund has also generated mixed reactions. Signed by Trump on March 7, 2025, the fund will not purchase Bitcoin directly from the market but will instead be capitalized by seized Bitcoin from criminal cases, which raises investors' hopes for eventual government purchases of Bitcoin. Currently, the U.S. government controls about 198,109 BTC, valued at roughly 16.1 billion USD. Yet, the lack of concrete purchasing plans has contributed to disillusionment, reinforcing bearish sentiments.
Despite these active controversies, some crypto tokens have noted isolated increases; for example, tokens like IP from Story Protocol and ENA from Ethena appreciated by 9.2% and 5.4%, respectively. Nevertheless, the broader environment is one of extreme fear, evidenced by the Fear and Greed Index plummeting to 20, indicating sustained anxiety levels since February 28, 2025.
Looking forward, traders appear hesitant, adopting 'wait-and-see' approaches until clearer signals emerge from the U.S. government about its economic policies or its handling of cryptocurrency. This is likely to create what analysts describe as a "Kangaroo Market"—where the market experiences significant bounce-back phases alongside persistent downward pressures driven by macroeconomic uncertainties.
While Bitcoin might be experiencing its most troubling time since November 2024, observers remain watchful over future governmental strategies. The cryptocurrency market will likely continue to react strongly to both the statements and actions of government officials, especially as the impacts of Trump's recent tariff decisions fully manifest within the economy. The tumult will provide traders and investors with challenges but also opportunities to navigate the multifaceted world of cryptocurrency.