Catenaa, Thursday, March 06, 2025-The global Crypto market took a significant hit Monday, with the market capitalization sinking 12%, resulting in $1 billion in liquidations across multiple exchanges.
Bitcoin, Ethereum, and other major cryptocurrencies saw sharp declines as investors pulled back amid the fading momentum of President Donald Trump’s proposed reserve plan.
Trump’s controversial plan, which sought to back a new digital dollar using Bitcoin, had initially sparked optimism in the market. However, recent statements suggesting delays in its rollout and growing skepticism from both Wall Street and tech industry insiders have led to a steep reversal in investor sentiment.
Bitcoin plunged 10% to $24,500, while Ethereum dropped 12% to $1,600, contributing to the overall market loss. Altcoins such as Solana and Cardano were also hit hard, seeing similar declines. The market-wide selloff triggered massive liquidations, as traders who had taken leveraged positions were forced to exit.
Analysts are now cautious, with some suggesting that the market may remain volatile in the short term as investors recalibrate their expectations. The uncertainty surrounding Trump’s plan is a key factor in the current downturn, though some analysts are still hopeful that regulatory clarity and innovation will eventually stabilize the sector.
As of Monday evening, the total cryptocurrency market cap stood at $950 billion, a stark drop from over $1 trillion earlier this month.
