- Bitcoin fell 3.2% to $79,937, with Ethereum dropping 7.5% amid fears of a US recession
- US President Trump's comments on tariffs triggered market sell-offs
- Investors focused on upcoming data, hoping for signs of market recovery
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.
As concerns over market instability grow, the cryptocurrency market no doubt faces a challenging period ahead.
7 persons sentenced to 76 years in prison for stealing crypto worth £100,000
Meanwhile, TheRadar earlier reported that seven people have been sentenced to a combined 76 years in prison for assault, kidnapping and stealing some £100,000 in cryptocurrency from a single victim. A Manchester Crown court in the United Kingdom found them guilty and sentenced them.
The criminals started targeting the victim in January 2023. According to the police, on December 2, 2023, they received an anonymous call reporting concerns for welfare at a flat in Irlam.
