Why did the encryption market today decrease the Trump tariff that shakes investors

The encryption market achieved great success on March 4, as Bitcoin, Ethereum, XRP and Solaa decreased sharply. Bitcoin (BTC) decreased by approximately 10 % to 83,738 dollars, while ETHEREUM (ETH) decreased 15 % to $ 2,076. XRP lost 18 %, Solana was destroyed by 20 %. The market has lost approximately $ 250 billion in only one day.

The accident started when merchants began selling large quantities of encryption, causing huge qualifiers. Within just 24 hours, more than a billion dollars were eliminated in encryption, according to Coinglass.

Bitcoin alone witnessed $ 396.16 million in the liquidation, while ETHEREUM recorded $ 209.58 million. Even the coins were not safe. Dogecoin (DOGE) lost 15 %, SHIB (SHIB) fell 13 %, and Pepe Coin (PEPE) decreased by 18 %.

Initially, things looks good. Donald Trump declared a strategic coding reserve in the United States on Sunday, which makes it seem to be the government to carry bitcoin and Ethereum. This prompted 4.41 % encryption rates On March 3. But the excitement did not last. Investors began to doubt if the plan was real, and people soon sold their property.

Then the real shock came: Trump announced a new tariff. Raise taxes on Chinese goods from 10 % to 20 % and set a tax by 25 % on imports from Mexico and Canada. China returned alone 10 % -15 % definitions on American goods. This made investors tense from the trade war, and began to withdraw money from risky investments such as encryption.

Why is the encryption market today?

Based on the above events, there are 3 main reasons:

1. Huge squares
2. The effect of Trump’s short -term encryption reserves.
3. Market failure to breach resistance

“The encryption market has witnessed severe fluctuations in the wake of former President Donald Trump’s announcement of a strategic reserve for American encryption. However, the gains did not last long, as doubts about implementation and organizational approval led to severe corrections,” explained to the Pi42 CEO, Avinash Shekhar, said.

The stock market also has an effect, as the value of the S&P 500 was lost at a value of $ 1.5 trillion. Investors are in full panic, as shown in the index of fear and greed, which decreased from 33 (fear) to 15 (extreme fear) overnight. Just one month ago, the index was in 60 (greed), showing the speedy change of things.

Now, everyone is watching two big events coming. On March 7, Trump will hold the White House The top of encryptionWhich can bring some organizational clarity. Also, the investment funds circulating in the new XRP, Cardano and Dogoin investment will soon be approved and more. Until then, the encryption is still unexpected, and investors keep their breath.

Also read: Tom Li expects that Bitcoin can exceed $ 150,000 in 2025