Emmanuel OchayiBitcoin’s price fell to $80,052 late Sunday night, marking a 7% decline in 24 hours. The drop comes as investors react to economic policies outlined by U.S. President Donald Trump. At the time of writing, Bitcoin has recovered slightly to $82,200, but market volatility remains high.
The overall cryptocurrency market also saw a sharp decline, losing 7% of its value and bringing the total market capitalisation down to $2.77 trillion. Ethereum, Solana, and XRP also recorded heavy losses, with Ethereum falling 8% to trade near $2,000.
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Bitcoin Liquidations Surge as Traders Exit Positions
The sharp downturn has triggered significant market liquidations. Data from Coinglass shows that $616 million worth of positions were liquidated in the past 24 hours. Long positions accounted for most of these losses, amounting to $540.49 million. Bitcoin alone contributed $231 million to the total liquidations.
The impact was also seen in Bitcoin futures on the Chicago Mercantile Exchange (CME). Futures opened at $82,110 on March 10, down $4,320 from the previous day’s close of $86,430. Earlier in the month, Bitcoin futures experienced a record single-day drop of $10,350 on March 3.
Trump’s Policies Add to Bitcoin Market Volatility
Investors have linked the recent decline in Bitcoin to remarks made by President Trump during a Fox News interview on March 9. He admitted that his economic policies could cause “temporary economic pain,” leading to concerns about market instability. His comments on budget cuts and trade tariffs have further fueled uncertainty in both cryptocurrency and traditional financial markets.
Some analysts compare the current economic climate to the 1980s, when former Federal Reserve Chairman Paul Volcker implemented strict anti-inflation measures. While those policies eventually stabilised the economy, they initially caused significant market turbulence.
Arthur Hayes, co-founder of BitMEX, has warned that Bitcoin could face further declines. He noted that many Bitcoin options are priced between $70,000 and $75,000, making further volatility likely if prices move into that range.
Traders Look Ahead to Key Economic Reports
With Bitcoin struggling to hold above $80,000, traders are closely watching key U.S. economic reports. The Consumer Price Index (CPI) data, set for release on March 12, and the Producer Price Index (PPI) report on March 13 could influence Bitcoin’s next price movements. Any signs of rising inflation or stricter monetary policies could impact market sentiment.
Market participants are also monitoring liquidity shifts. Dan Hughes, founder of Radix, observed that liquidity is flowing away from Bitcoin and other cryptocurrencies toward new assets such as Trump Coin. According to Hughes, the shift is driven by a fear of missing out (FOMO), with investors selling existing crypto holdings to buy new speculative assets.
Bitcoin Faces Growing Competition and Security Concerns
Bitcoin’s decline has coincided with increased concerns about market security. A rise in memecoin scams has led some investors to move funds into safer assets. In February, Solana experienced significant outflows, with $485 million leaving the ecosystem. Binance Research reports that much of this capital has shifted to Ethereum, Arbitrum, and the BNB Chain.
While Bitcoin remains the dominant cryptocurrency, its market share has remained at 58.2%, even amid the downturn. However, with growing economic uncertainty and shifting investor sentiment, Bitcoin’s price may face further volatility in the coming weeks.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
