By Key Points
- Bitcoin crashes to $80K as Trump’s policies shake markets
- Bitcoin fell 7%, dropping to $80,052 before rebounding.
- Crypto markets lost $616M in liquidations, mostly long positions.
- Trump’s economic policies raised fears of market instability.
- Analysts warn Bitcoin could test $78K amid ongoing uncertainty.
Bitcoin took a sharp dive, dropping to $80,052 before recovering slightly to $82,200. The 7% fall in the past 24 hours has rattled investors, with the entire cryptocurrency market seeing a similar downturn, now valued at $2.77 trillion.
Ethereum, Solana, and XRP all faced losses of 6-8%, with Bitcoin’s dominance holding at 58.2%. The latest price action has triggered over $616 million in liquidations, with long traders losing $540 million. Bitcoin alone accounted for $231 million in liquidated positions, according to Coinglass data.
An ugly start to the week. Looks like $BTC will retest $78k. If it fails, $75k is next in the crosshairs. There are a lot of options OI struck $70-$75k, if we get into that range it will be violent. pic.twitter.com/q4cq0rthGJ
— Arthur Hayes (@CryptoHayes) March 9, 2025
Adding to the bearish sentiment, Bitcoin futures on the Chicago Mercantile Exchange (CME) opened at $82,110, down $4,320 from the previous day’s close. This marks the second-largest single-day drop in CME futures this month, following a $10,350 loss on March 3.
Meanwhile, Bitcoin ETF outflows have intensified, with investors pulling $4.5 billion amid ongoing market uncertainty. The increasing outflows signal growing investor caution, further contributing to Bitcoin’s downward pressure. Read more on Bitcoin ETF outflows here.
Trump’s economic stance fuels investor anxiety
The sell-off came after U.S. President Donald Trump admitted in a Fox News interview that his economic policies could cause temporary financial strain. His statements about budget cuts and trade tariffs raised concerns that financial markets—including crypto—could see increased volatility.
TRUMP: “There could be a little disruption. You can’t really watch the stock market. If you look at China, they have a 100-year perspective… we go by quarters. What we’re doing is building a foundation for the future.”
Trump 2.0 is very different.
He’s Volcker-ing™️ himself. pic.twitter.com/OsqmQA7k2H— Geiger Capital (@Geiger_Capital) March 9, 2025
Some investors are drawing parallels to the 1980s when Federal Reserve Chairman Paul Volcker’s aggressive anti-inflation measures initially led to market turmoil before stabilizing the economy in the long run.
Arthur Hayes, co-founder of BitMEX, warned that Bitcoin could retest $78,000, pointing to options data showing heavy positioning between $70,000 and $75,000. If prices move into that range, further volatility could follow.
At the same time, regulatory uncertainty in the U.S. continues to affect market sentiment. New crypto rules proposed by U.S. banks could further restrict institutional involvement, making investors hesitant. Check out how U.S. banks’ crypto rules could impact the market.
What’s next for Bitcoin and crypto?
Despite the recent downturn, whales are quietly accumulating specific altcoins, indicating potential market shifts in the coming weeks. Find out which altcoins whales are buying in March 2025.
Additionally, the U.S. government’s Bitcoin reserves have sparked speculation about potential ETF outflows worth $370 million. If these reserves are sold, it could lead to another wave of price instability. Learn more about the U.S. Bitcoin reserve and its market impact.
What in the American communist hell is this?😳
Trump just signed an executive order saying ONLY the President or the Attorney General can interpret the law. No agencies, no regulators—just him and his handpicked AG.pic.twitter.com/HulM3dGSy2
— Mario 🇺🇸🇵🇱🇺🇦🇪🇺 (@PawlowskiMario) February 19, 2025
Meanwhile, crypto companies like Gemini, Kraken, and BitGo are considering IPOs, which could introduce new capital into the market. Explore the upcoming wave of crypto IPOs here.
Traders are now closely watching key economic reports this week, including the U.S. Consumer Price Index (CPI) on March 12 and the Producer Price Index (PPI) on March 13. These reports could dictate Bitcoin’s next move and determine if the market recovers or faces further downside.
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