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Tuesday, March 4: Bitcoin dropped below $84,000, wiping away gains from the spike triggered by U.S. President Donald Trump's proposal of a crypto reserve over the weekend. The overall value of the larger cryptocurrency market also fell by more than 10%.
Before market prices dropped back to $2.9 trillion, the digital asset market saw a $330 billion spike on Sunday, raising the overall crypto capitalization to $3.2 trillion. During Tuesday's trading, the market value of major cryptocurrencies fell to $2.9 trillion, while they suffered double-digit losses.
Bitcoin, Ethereum, and Solana Suffer Heavy Losses
- Bitcoin
Bitcoin and its digital asset competitors had a difficult day, with worldwide trade volume hitting $175.84 billion, more than 4% less than the day before. Over the course of the last day, the price of Bitcoin dropped to $82,618 before gradually rising to $83,634. The volume of Bitcoin alone accounts for $72.86 billion of all trading activity worldwide today.
- ETH and SOL
Ethereum (ETH) has dropped more sharply, by 16.5%, than Bitcoin (BTC), which has fallen by 10.5%. Not far behind, XRP has lost 18.7% of its value about the US dollar. While BNB has experienced a 10.2% decline, Solana (SOL) has experienced an even more severe decline of 21.3%.
- Other cryptocurrencies
But Cardano (ADA) suffered even more severe losses, falling 27.4%, while Dogecoin (DOGE) lost 17.5%. Memes were among the most severely impacted assets; SNEK, MOG, and AI16Z all saw significant losses of 29.29%, 28.24%, and 27.59%, respectively.
Additionally, POPCAT, TRUMP, and PNUT reported double-digit losses of more than 20%. Because of the severity of the sell-off, $1 billion was liquidated on cryptocurrency derivatives exchanges. Long holdings accounted for $867.87 million of this total, with BTC derivatives alone responsible for $310.55 million in liquidations in the past day. There were also notable liquidations in ETH, SOL, XRP, and ADA positions.
Market Pressure from These Losses
The current situation of the market caused significant selling pressure on cryptocurrency stocks, causing Coinbase (COIN) to fall 4.58% and Robinhood (HOOD) to lose 6.41%. During this time, Strategy's (MicroStrategy) stock price only dropped by 1.77%.
Mass liquidations caused losses on heavy positions over $800 million, putting immense pressure on the market. According to market observers, Bitcoin might drop below $80,000 due to CME futures gap circumstances and decreasing market interest. Trump's new policy concerning tariffs on Canada and Mexico will go into effect on March 4, which has investors cautious of the market.
