Bitcoin Drops Below $80,000 as Macro Headwinds Offset Trump Push

Sidhartha Shukla and Suvashree Ghosh

Updated Mon, Mar 10, 2025, 8:11 AM 3 min read

(Bloomberg) — Cryptocurrency prices extended their descent arsenic escalating tariff warfare tensions and diminishing prospects of further Federal Reserve complaint cuts offset a question of pro-crypto announcements from President Donald Trump past week.

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Risk assets similar crypto are nether unit amid anxiousness that the Trump’s tariffs and authorities firings volition torpedo maturation successful the world’s largest economy. US equities slumped and Treasuries rallied arsenic investors sought a refuge.

“While Trump’s strategical crypto reserve announcement initially drove optimism, the rally rapidly unraveled amid assertive selling linked to worsening macro conditions,” wrote Nikolay Karpenko, manager astatine B2C2.

Bitcoin (BTC-USD) fell arsenic overmuch arsenic 4.5% to $79,334 connected Monday, the lowest level since Feb. 28, earlier paring the loss. Solana, Cardano and XRP, each tokens that Trump had mentioned arsenic imaginable candidates for a digital-asset stockpile but were not mentioned successful Trump’s enforcement order, besides slumped.

Trump’s crypto-friendly stance, including an bid to make a US Bitcoin reserve and a abstracted stockpile of different tokens, on with a high-profile acme with manufacture executives successful Washington, has done small to assistance marketplace sentiment. While the medication pledged to capitalize the reserve with crypto seized successful ineligible proceedings, the lack of caller superior commitments disappointed investors.

“The marketplace perceived the acme arsenic underwhelming and apical cryptocurrencies dropped aft it was revealed that the wide anticipated crypto reserve would lone clasp existing authorities holdings,” said Jeff Mei, main operating serviceman astatine crypto speech BTSE.

The US presently owns astir $17 cardinal worthy of Bitcoin and astir $400 cardinal worthy of respective different tokens, mostly attributable to plus forfeitures related to civilian and transgression cases.

Investors are rationally much bullish connected crypto fixed caller developments similar the reduced US Securities and Exchange Commission enforcement, but different factors are much nuanced oregon adjacent negative, said Ari Paul, co-founder of BlockTower Capital.

“The evident capricious favoritism successful the administration’s enactment of assets for the strategical reserve — particularly aft the launching of Trump and Melania coins — is simply a beardown deterrent to investors,” Paul said successful a message. “It’s created the content that the Trump medication is engaged successful lobbying based enactment and promotion of ‘insider’ assets, and that the cryptocurrency marketplace contiguous is mostly a short-term trading casino,” helium added.