On March 4, the cryptocurrency market saw a $410 billion decline triggered by tariffs, with Bitcoin dropping 13%. Dogecoin continues to decline despite support from Musk, while Ethereum dips as tariff effects overshadow initial bullish sentiments. Investors are urged to research thoroughly before making any investments in cryptocurrencies due to the inherent risks.

On March 4, the cryptocurrency market experienced a significant downturn with a market cap drop of $410 billion following President Trump’s tariffs that triggered a $1.1 billion sell-off just a day later. Bitcoin notably fell by 13% during early Asian trading, resulting in a $125 billion decline in its market cap, erasing the gains made over the weekend. On Monday, Bitcoin ETFs only attracted $3.8 million in inflows according to Fairside.co.uk.

Dogecoin (DOGE) has continued its bearish trend, trading around $0.19 on Tuesday, which followed a nearly 17% drop the previous day. This decline has led to over $20 million in liquidations within just 24 hours and exceeds $100 million over the past week. The existing technical indicators suggest a potential pullback that could target the $0.14 mark.

Ethereum experienced a 16% price drop to settle at $2,100 after an initial rise from $2,200 to $2,550 following Trump’s proposal for a US Crypto Strategic Reserve that included ETH. However, the impact of tariffs has undermined this bullish momentum, leading short-term traders to realize profits, resulting in uncertainty in the market sentiment.

Investing in the cryptocurrency market is fraught with risks, and all individuals are encouraged to conduct comprehensive research prior to making investment decisions. FXStreet does not endorse the information presented as investment advice, and disclaims any responsibility for potential inaccuracies. The authors have no financial interests in the stocks discussed, and the projections made herein do not constitute official guidance from FXStreet or its affiliates.

The cryptocurrency market is currently facing challenges, marked by substantial declines in Bitcoin, Dogecoin, and Ethereum prices. The effects of President Trump’s tariffs have negatively impacted market sentiment, leading to widespread liquidations and significant capital losses. Investors should proceed with caution and conduct thorough due diligence before participating in this volatile market.

Original Source: www.fxstreet.com

Related posts:

Evaluating Bitcoin’s Price Dynamics: Potential Corrections and Future Prospects BTC, ETH, and XRP Price Predictions: Key Levels to Watch for a Rally Cryptocurrency Market Update: Bitcoin Approaches $100K on February 4, 2025 Crypto Price Analysis for February 14: Examining ETH, XRP, ADA, BNB, and SOL