Why Is Crypto Market Down Today? Bitcoin Price Nears 2025-Lows

Another Sunday selloff has hit the crypto market, sending Bitcoin (BTC) tumbling once again. The world’s largest cryptocurrency is now edging closer to its 2025 low of $78,000, sparking concern among investors. In just the past week, Bitcoin has dropped over 11%, wiping out most of its recent gains. As of now, it’s trading at $82,176, down more than 4% in the last 24 hours.

But Bitcoin isn’t the only one feeling the heat – major altcoins are also taking a hit, and market-wide liquidations have surged past $600 million.

Phew. Is more pain on the way?

Altcoins Take a Hit as Market Declines

The broader crypto market has dropped by 7%, bringing the total valuation down to $2.77 trillion. Many major altcoins have also suffered losses:

• Solana (SOL) and XRP fell 7% each
• Ethereum (ETH) dropped 8%, nearing the $2,000 mark
• Cardano (ADA) and Dogecoin (DOGE) lost 7% and 9%, respectively

The market crash led to $616 million in liquidations over the past 24 hours, with long positions taking the biggest hit at $540 million. Bitcoin alone accounted for $231 million in liquidations.

Trump Responds to Recession Concerns

In a recent Fox News interview, President Donald Trump Donald Trump   Donald J. Trump is a US-based entrepreneur, Pro-crypto Politician, and the 45th and 47th President of the United States of America. He understands the importance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto leader.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Known For Businessman, Pro-Crypto Politician   Once doubtful about Bitcoindominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his kitty. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Criticized Bitcoin and Libra on X, dubbing them as "not money"   2024 – Campaign signals potential openness to crypto-friendly reforms   2025 –  Elected as the 47th President of the United States from the Republican Party.   A meme coin, $TRUMP, is associated with Donald Trump, which is listed on the Solana blockchain platform. His family also backs World Liberty Financial (WLF), a crypto venture.     President was asked about the possibility of a recession in 2025. He avoided making a direct prediction but acknowledged that economic transitions could cause short-term uncertainty.

“I hate to predict things like that,” he said, “There is a period of transition, because what we’re doing is very big — we’re bringing wealth back to America, It takes a little time.”

However, Trump’s Commerce Secretary, Howard Lutnick, firmly dismissed worries about an economic downturn, saying, “Absolutely not,” when asked if Americans should be worried over it.

Tariffs, Budget Cuts, and Economic Disruptions

Trump defended his economic policies, including tariffs and budget cuts, saying that while they may cause short-term disruptions, they are part of a long-term plan.

“There might be some disruption. China has a 100-year plan, while we focus on quarterly results. What we’re doing is laying the groundwork for the future,”

His comments have drawn comparisons to former Federal Reserve Chairman Paul Volcker, who aggressively raised interest rates in the 1980s to fight inflation, even though it led to a recession. Volcker’s actions eventually stabilized the economy, and some believe Trump’s approach could follow a similar path—short-term pain for long-term gain.

Bitcoin Under Pressure

Bitcoin’s decline comes as trade tensions between the US and China are expected to worsen. On Monday, China will impose tariffs on US agricultural goods in response to Trump’s latest import tax increases. This trade war has created uncertainty across financial markets.

BitMEX co-founder Arthur Hayes has warned that Bitcoin could fall further, possibly testing the $78,000 level again. He noted that many Bitcoin options are priced between $70,000 and $75,000, which could lead to more volatility if the price moves into that range.

On Friday, Federal Reserve Chairman Jerome Powell said the central bank would remain cautious about interest rates while assessing the impact of Trump’s policies. His comments came after a weak US nonfarm payrolls report, which reinforced expectations for at least three interest rate cuts this year.

Traders are now closely watching two key economic reports this week:

• The US Consumer Price Index (CPI) on March 12
• The Producer Price Index (PPI) on March 13

These reports could influence Bitcoin’s next move, as inflation data often impacts market sentiment.

• Also Read :
•   Explained: Why Did Trump’s Bitcoin Reserve Plan Crash the Crypto Market?
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What’s Next for Bitcoin?

Bitcoin’s recent drop has divided investors. Some see it as a chance to buy at a lower price, believing the market will recover. Others fear more declines, especially with ongoing economic uncertainty.

A market recovery will likely depend on several factors, including inflation trends, Federal Reserve policies, and regulatory clarity. If Bitcoin can break above $95,000 and economic conditions improve, investor confidence could return. However, the timing of a potential rebound remains uncertain.

The crypto market is no stranger to volatility, but whether this dip is a buying opportunity or a warning sign remains to be seen.

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