The cryptocurrency market is facing challenges amid macroeconomic changes and comments from leading politicians.
Sell-Off in the Crypto Market
On March 10, the cryptocurrency market experienced a wave of sell-offs following former U.S. President Donald Trump's comments on potential economic hardships associated with his policies in his March 8 interview. Bitcoin fell by 10% over the week, trading at $82,574 and nearing the 2025 low of $78,000. The broader crypto market declined by 7%, reducing its total value to $2.8 trillion.
Impacts of U.S. Economic Policy
The market is concerned about Donald Trump's statements on budget cuts and trade tariffs, which increased volatility and prompted investors to move away from risky assets like cryptocurrencies. During this time, U.S. stock markets also suffered significant losses, with companies such as Nvidia and Tesla losing over 8% and 12% in value, respectively.
Future of the Cryptocurrency Market
Investors are closely watching economic indicators, such as the U.S. Consumer Price Index and Producer Price Index, which could influence short-term market dynamics. Many analysts warn of potential further price swings and believe Bitcoin may correct to multi-month lows.
The cryptocurrency market remains under pressure amid macroeconomic uncertainty and policy changes from major powers. Uncertainty regarding trade disputes and unmet expectations of Bitcoin support may continue to impact the market.
