In a dramatic turn of events, the cryptocurrency market plunged on March 4, 2025, with Bitcoin (BTC) and Ethereum (ETH) leading the losses. The downturn has sent shockwaves through the digital asset space, fueled by a perfect storm of economic uncertainty, traditional market sell-offs, and large-scale liquidations.
Tariffs, Stocks, and Crypto: A Chain Reaction
The recent enforcement of new U.S. tariffs has reignited global trade tensions, triggering volatility across financial markets. The fallout has rippled into the crypto sector, reinforcing the growing correlation between digital assets and traditional stocks.
As major U.S. indices posted steep losses, Bitcoin and Ethereum followed suit, reflecting broader investor uncertainty. The crypto market, once hailed as a hedge against economic turmoil, is proving increasingly sensitive to global financial trends.
$1 Billion Liquidated as Crypto Traders Face a Brutal Shakeout
Adding fuel to the fire, the past 24 hours have seen an unprecedented $1 billion in leveraged positions liquidated, as overextended traders faced margin calls. With such heavy overleveraging, even minor market dips can trigger cascading sell-offs, accelerating the downward spiral.
Profit-Taking Sparks Sell-Off
Before the crash, altcoins like XRP, Cardano (ADA), and Solana (SOL) surged to multi-month highs, attracting a wave of bullish sentiment. However, many investors seized the opportunity to lock in profits, leading to an abrupt market correction.
What’s Next for Crypto?
With economic policy shifts, investor sentiment, and global market trends shaping crypto’s trajectory, volatility is expected to continue. The key question remains: Will Bitcoin and Ethereum rebound, or is the market headed for deeper losses?
For real-time updates and expert insights, check out the latest reports from:
📉 Cointelegraph – Why is the crypto market down today?
📉 Crypto Briefing – Crypto market in free fall ahead of Trump tariff deadline
📉 Blockchain.News – Over $1 Billion Liquidated in Cryptocurrency Market
📉 MarketWatch – Stocks kick off March with biggest drop in months
📉 Reuters – Stocks slide as new Trump tariffs take effect
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