The United State’s tariff war and federal job cuts continue to impact the markets and economy, dragging cryptocurrencies down for a second day on March 11, 2025. In fact, Bitcoin is at the lowest its been since Donald Trump won the US election in November 2024.
The world’s largest cryptocurrency at 7.35 am on March 11, was at $79,039.34 — down 3.31 per cent from the previous day, and over the past month its down a significant 18.35 per cent.
The slump is more significant as most major cryptos, including Bitcoin, soared last week after Donald Trump kept his poll promise and signed an executive order forming a crypto reserve for the US.
Broader Crypto Market in Doldrums
On March 10, Bitcoin was down over 5.47 per cent to $81,712, and while the one-day slide since has reduced to 3.31 per cent, according to data on CoinMarketCap. It is also down around 28 per cent from the record high of $109,241, as per CoinGecko
Further, since February 2025, investors have drawn out around $4.4 billion from US Bitcoin exchange-traded funds (ETFs). Overall, the crypto market has lost more than $1 trillion in market capitalisation from its peak, CoinGecko showed.
Crypto-linked stocks also slumped — Coinbase Global fell 18 per cent — its biggest decline since July 2022, and Michael Saylor’s levered Bitcoin proxy Strategy lost 17 per cent, according to a Bloomberg report.
Nikolay Karpenko, director at B2C2 in a note felt that while Donald Trump’s crypto reserve announcement “initially drove optimism, the rally quickly unraveled amid aggressive selling linked to worsening macro conditions.”
Why Are Cryptocurrency Prices Sliding?
When faced with macroeconomic challenges that threaten the stability of risky investments, Donald Trump‘s “crypto-friendly” stance has had little impact on market sentiment towards cryptos.
Escalating tariff-war tensions and uncertainities in the US economy, from the federal job cuts, have shaken high-risk assets such as cryptocurrencies, it added. In fact, investors flocked to Treasury offerings seeking safe haven as the stock markets also slid, the report noted.
Ari Paul, co-founder of BlockTower Capital told Bloomberg that while investors are more keen on crypto given the Trump administration’s push for it, other factors are “more nuanced or even negative”.
“The apparent capricious favoritism in the administration’s selection of assets for the strategic reserve — especially after the launching of Trump and Melania coins — is a strong deterrent to investors. It’s created the impression that the Trump administration is engaged in lobbying based selection and promotion of ‘insider’ assets, and that the cryptocurrency market today is largely a short-term trading casino,” Paul felt.
(With inputs from Bloomberg)
