Bitcoin and several major cryptocurrencies saw significant losses on Tuesday, March 11, as mounting concerns over the US economy and rising trade tensions sent shockwaves through global markets.
Bitcoin fell by 3.2%, dipping to $79,937 after reaching a low of $76,624. Ethereum also suffered a sharp drop, down 7.5% to $1,911. The global cryptocurrency market cap declined by 4.3%, bringing it to $2.6 trillion, according to The Economist.
Other prominent cryptocurrencies, including Solana, XRP, Cardano, and Dogecoin, also experienced losses. Dogecoin, in particular, plunged 8.5%.
The decline in the crypto market followed comments by US President Donald Trump, who spoke of a “period of transition” in an interview with Fox News.
While he did not clarify whether his tariff policies might lead to a recession, his remarks sparked fears among investors, resulting in declines across cryptocurrencies, stocks, and the US dollar. Treasury yields also saw a drop in response.
“The crypto market is witnessing a major downturn, with Bitcoin falling below $80,000 and Ethereum hitting a 16-month low around $1,800, Fears of an impending recession and the broader market sell-offs are fuelling this pullback” said Avinash Shekhar, Co-Founder and CEO of Pi42.
Macroeconomic factors, such as inflation and rising interest rates, continue to contribute to market volatility, exacerbating investor concerns.
Looking ahead, analysts suggest that upcoming economic data will be critical in determining the market’s direction.
“The release of Job Openings and Labor Turnover data will be crucial for the bulls to regain control, Positive data could help Bitcoin reclaim the $84,000 mark.” said Edul Patel, CEO of Mudrex.
Bitcoin’s market cap has fallen to $1.585 trillion, maintaining a dominance of 61.04%. Trading volume surged by 53.14%, reaching $58.13 billion, as investors reacted to the volatility.
“Bitcoin’s ability to reclaim and hold the $80,000 mark is critical for overall market stability,” noted Vikram Subburaj, CEO of Giottus.
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As concerns over a potential recession continue to grow, the cryptocurrency market faces a challenging period ahead.
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