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The crypto market took a big hit on March 4, with Bitcoin, Ethereum, XRP, and Solana all dropping sharply.
The crypto market took a significant hit on March 4, with Bitcoin, Ethereum, XRP, and Solana all falling sharply.
Bitcoin (BTC) fell nearly 10% to $83,738, while Ethereum (ETH) dropped 15% to $2,076. XRP lost 18%, and Solana crashed by 20%. In total, the market lost nearly $250 billion in just one day.
The crash started when traders began selling off large amounts of crypto, leading to massive liquidations. In just 24 hours, more than $1 billion in crypto was wiped out, according to Coinglass.
Bitcoin alone saw $396.16 million in liquidations, while Ethereum recorded $209.58 million. Even meme coins weren’t safe. Dogecoin (DOGE) lost 15%, Shiba Inu (SHIB) dropped 13%, and Pepe Coin (PEPE) fell 18%.
What happened to trigger the crypto crash?
At first glance, things were looking positive. Former President Donald Trump announced a U.S. Crypto Strategic Reserve on Sunday, March 3, which would see the government investing in major cryptocurrencies like Bitcoin and Ethereum.
This news pushed crypto prices up by 4.41% on March 3. However, the excitement was short-lived as investors started doubting the plan’s feasibility due to a lack of information about its implementation and approval from regulatory bodies.
Moreover, Trump announced new tariffs, which could spark a trade war and put investors on edge to withdraw their investments from risky assets like crypto.
See Also: Donald Trump Announces U.S. Crypto Strategic Reserve - Is It A Hoax?
What’s next for the crypto market?
The stock market also felt the impact, with the S&P 500 losing $1.5 trillion in value. Investors are in full panic mode, as evidenced by the Fear and Greed Index, which dropped from 33 (Fear) to 15 (Extreme Fear) overnight.
To put this in perspective, just one month ago, the index was at 60 (Greed), showcasing how rapidly things changed.
Now, everyone’s looking towards two upcoming events. On March 7, Trump will hold a White House Crypto Summit, which might bring some regulatory clarity to the industry.
Also, new spot ETFs for XRP, Cardano, Dogecoin, and more could be approved soon.
But until then, crypto remains in a volatile state, and investors are holding their breath as they navigate this turbulent market.
Disclaimer:info@kdj.com
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