Crypto Crash: $800M Wiped Out as Tariffs Spark Recession Fears

Crypto markets experienced a significant downturn on March 4, with a collective loss of $800 million. The total market capitalization plummeted by 9% to $2.77 trillion, while trading volume decreased by 14% to $177 billion. Bitcoin, Ethereum, and XRP initially surged following President Trump's announcement of a crypto reserve on Sunday. However, the market reversed sharply as new tariffs on Mexico and Canada took effect, leading to heavy sell-offs and growing recession fears.

Bitcoin faced downward pressure due to CME gaps and institutional liquidations, crashing by 10%. Altcoins like Ethereum and XRP followed the trend, with ETH decreasing by 15% and XRP by 17%. Bitcoin price dropped over 10% from a peak of $93,664, hovering at $83,973, indicating a downtrend in the past 24 hours. Ethereum price saw a notable decrease, hovering below the $2,200 support level following other crypto coins. XRP is now trading at $2.35, reflecting a 17% drop within the past 24 hours.

Market analysts suggest that Bitcoin must stabilize above $82,500 to halt further declines. If Bitcoin's downtrend pauses, altcoins could regain momentum. Otherwise, most altcoins may continue to struggle, except for those on Trump's reserve list, such as ETH, SOL, XRP, and ADA. The market's volatility and macroeconomic concerns are driving investors away from crypto assets, causing price declines. A CME gap signals potential corrections, influencing Bitcoin's price movements. Economic uncertainty continues to impact crypto prices, with investors seeking safer havens.