Crypto Market Crashes After Weekend Rally as Tariffs and ETF Outflows Shake Investor Confidence
The cryptocurrency market faced a sharp downturn on March 4, erasing gains from the weekend rally sparked by former President Donald Trump’s announcement of a U.S. Crypto Strategic Reserve.
Bitcoin, which had surged to nearly $95,000 on Sunday, plummeted to $83,000 by early Tuesday morning. Ethereum followed suit, dropping 14% to $2,100, while XRP and Solana saw losses of 20% and 8%, respectively.
Sunday’s rally was driven by Trump’s declaration that Bitcoin, Ethereum, XRP, Solana, and Cardano would form part of a government-backed crypto reserve aimed at making the U.S. the “Crypto Capital of the World.”
Investors initially interpreted this as a bullish signal, fueling speculative buying across the market. However, the optimism quickly faded as macroeconomic concerns took center stage.
The sell-off began late Monday after Trump confirmed a 25% tariff on Canadian imports and a 10% tariff on its energy sector. Canada retaliated with tariffs on $20.7 billion worth of U.S. goods and announced plans to expand the measures further.
These escalating trade tensions rattled financial markets globally, leading to a risk-off sentiment that hit cryptocurrencies particularly hard. Adding to the pressure were significant outflows from crypto-focused exchange-traded funds (ETFs).
Crypto Market Faces Turbulence Amid ETF Outflows
BlackRock’s flagship Bitcoin ETF saw $1.17 billion in withdrawals on Monday alone, contributing to total crypto ETF outflows of $2.9 billion over the past week. This marked a stark reversal from February’s inflows, which had reached $29 billion.
Liquidations also played a role in amplifying the downturn. Over $1 billion in leveraged positions were wiped out in the past 24 hours. Traders scrambled to exit their bets amid heightened volatility.
Despite the broader decline, Cardano stood out for its extraordinary performance during Sunday’s rally, jumping 43% before succumbing to selling pressure later. Analysts noted that its inclusion in Trump’s reserve plan had generated significant excitement among retail investors.
Technical indicators point to further challenges ahead for major cryptocurrencies like Bitcoin and Ethereum. Bitcoin’s Relative Strength Index (RSI) dropped into oversold territory at 30, while Ethereum showed a bearish MACD crossover earlier this week.
Market participants now await Trump’s speech scheduled for Tuesday night for potential clarity on his crypto policies. Until then, uncertainty looms large over an industry already grappling with regulatory scrutiny and macroeconomic headwinds.
Live Market IntelligenceCrypto — Live Market Board
Rio Times · Live Market Intelligence
Crypto — Live Market Board
-0.26%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| BTC | 63,384 | -0.26% | -47.24% | 63,552 | 64,346 | 63,305 | 22,774,743,040 |
| ETH | 1,886 | +0.26% | -58.90% | 1,881 | 1,920 | 1,879 | 7,916,475,392 |
| SOL | 75.89 | -0.40% | -60.44% | 76.20 | 76.99 | 75.39 | 1,473,821,056 |
| XRP | 1.01 | -1.15% | -69.07% | 1.02 | 1.02 | 1.01 | 1,144,044,416 |
| BNB | 609.60 | -1.12% | -26.81% | 616.50 | 619.30 | 609.23 | 1,266,706,432 |
| ADA | 0.18 | -1.98% | -78.22% | 0.19 | 0.19 | 0.18 | 238,085,632 |
| DOGE | 0.07 | -1.56% | -70.00% | 0.07 | 0.07 | 0.07 | 553,256,192 |
| AVAX | 6.38 | +1.04% | -74.11% | 6.32 | 6.42 | 6.21 | 248,470,560 |
| LINK | 8.77 | -0.06% | -62.73% | 8.77 | 8.87 | 8.68 | 317,054,880 |
| DOT | 0.78 | -0.75% | -81.11% | 0.79 | 0.80 | 0.78 | 43,490,492 |
| LTC | 45.08 | -0.85% | -65.45% | 45.47 | 45.59 | 44.98 | 143,727,712 |
| BCH | 213.85 | +0.10% | -65.44% | 213.64 | 215.69 | 212.54 | 137,956,688 |
| TRX | 0.34 | +0.28% | -4.73% | 0.33 | 0.34 | 0.33 | 436,576,064 |
| XLM | 0.16 | -1.33% | -64.46% | 0.16 | 0.16 | 0.16 | 89,559,864 |
| HBAR | 0.07 | -0.53% | -74.67% | 0.07 | 0.07 | 0.07 | 22,546,186 |
| NEAR | 1.65 | +2.42% | -40.55% | 1.62 | 1.68 | 1.61 | 187,591,264 |
| ATOM | 1.40 | -2.36% | -70.15% | 1.44 | 1.44 | 1.40 | 18,626,964 |
| AAVE | 89.06 | +0.93% | -72.33% | 88.24 | 90.20 | 88.19 | 129,099,704 |
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.
Read More from The Rio Times