The cryptocurrency market erased all gains from President Trump’s US Crypto Strategic Reserve announcement, plunging by over 14.7% in seven days to reach $2.7 trillion on March 10.
Top cryptocurrencies and their 24-hour performances. Source: Coin360
Several factors have contributed to the latest drop in crypto prices, including:
-
Trump’s acknowledgement that his policies will cause short-term pain to the economy.
-
Investors are risk-off amid the continued outflows from crypto investment products.
-
TOTAL drops toward the technical target of a descending triangle.
Trump acknowledges short-term pain for economy
President Trump’s recent statements have cast a shadow over the crypto market, tempering the enthusiasm that followed his pro-crypto rhetoric earlier in 2025.
Key points:
-
Bitcoin (BTC) declined 4% in the last 24 hours.
-
Ether (ETH) is down 3.2% over the last 24 hours to trade just above $2,000.
-
Solana (SOL) and XRP (XRP) have also recorded losses, down 7.2% and 4.5%, respectively.
Compounding the issue are the significant liquidations in the derivatives market.
-
A total of $650.80 million in liquidations has been recorded in the past 24 hours.
-
Long positions took the hardest hit, with $595.75 million liquidated.
Crypto market liquidation heatmap. Source: CoinGlass
-
Bitcoin and Ethereum were the biggest casualties, with $264.22 million and $114.76 million in liquidations, respectively.
-
When long positions are liquidated, traders’ holdings are automatically sold, increasing market supply and driving prices lower.
More critically, US President Donald Trump acknowledged that markets could see short-term pain from his policies, including the trade tariffs on Canada, Mexico, and China and budget-cutting plans.
“There could be a little disruption,” said Trump in an interview with Fox News, adding:
“If you look at China, they have a 100-year perspective… we go by quarters. What we’re doing is building a foundation for the future.”
The market, which surged post-election on hopes of a deregulated, crypto-friendly administration, is now grappling with the reality that Trump’s broader economic agenda may introduce headwinds before any crypto-specific benefits materialize.
Investors continue de-risking from crypto funds
The crypto market’s ongoing correction aligns with the huge capital outflows from crypto investment products.
Key takeaways:
-
Digital asset investment products saw outflows for the fourth week in a row, totaling $876 million during the week ending March 7, as per CoinShares report.
-
This brings outflows to $4.75 billion in the last four weeks, reducing the year-to-date inflows to $2.6 billion.
-
This indicates institutional investors decreased their exposure to digital assets.
-
Bitcoin saw the biggest share of outflows, totaling $756 million.
-
Total assets under management have declined by $39 billion from their peak to the current value of $142 billion, the lowest point since mid-November 2024.
Capital flows for crypto investment products. Source: CoinShares
CoinShares head of research James Butterfill attributed this to “negative sentiment,” suggesting “capitulation” among investors.
“Although this indicates a slowdown in the pace of outflows, investor sentiment remains bearish. ”
Additionally, the Crypto Fear & Greed Index plummeted to 10 on March 10, its lowest since July 2022, indicating “extreme fear.”
The Crypto Fear & Greed Index. Source: Alternative.me
TOTAL validates descending triangle
From a technical perspective, today’s crypto market’s decline is part of a correction trend that saw TOTAL—the total market capitalization of all cryptocurrencies—drop below a descending triangle pattern.
-
A descending triangle is a bearish continuation pattern, forming when the price makes lower highs while maintaining a flat support level at the bottom.
-
The pattern is confirmed when the price breaks below the support level with high volume and drops by as much as the triangle’s maximum height.
-
As of March 10, TOTAL had fallen to the pattern’s target of $2.6 trillion at the 50-weekly simple moving average (SMA).
TOTAL/USD weekly chart. Source: Cointelegraph/TradingView
-
If selling pressure persists, the 100–week SMA at $2 trillion could become the next downside target.
-
Holding the 50-week SMA as support may strengthen the ongoing rebound toward the pattern’s lower trendline, aligning with the $3.1 trillion level.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
