Why is crypto falling today: The crypto market lost $980 million

On March 4, 2025, the cryptocurrency market collapsed by 14.5%, losing all the gains gained after US President Donald Trump announced the creation of a strategic crypto reserve. Total market capitalization fell to $2.6 trillion as a result of escalating tariff wars and mass liquidations. Bitcoin, which has about 60% of the market and has fallen 8.8% in the last 24 hours, has taken the brunt.

Reasons for the fall of the cryptocurrency market

The key driver of the collapse was US trade policy. New tariffs against Mexico, China and Canada went into effect on March 4, prompting retaliatory measures:

• Beijing has imposed duties of up to 15% on US exports.
• Ottawa responded with 25% tariffs on $107 billion worth of American goods.

The moves have added to global uncertainty, pushing investors to sell off risky assets, including cryptocurrencies. As the editors of CryptoInside note, the market behavior is reminiscent of the February collapses on the 3rd and 28th, caused by similar threats from Trump. Compounding the situation is Bitcoin’s strong resistance at its 50-week moving average (SMA), which could make recovery difficult.

Bitcoin continues to fall

Bitcoin (BTCUSD), the market leader, fell 8.8% overnight, losing almost $980 million as a result of position liquidations. This drop coincided with a general decline in risk markets: US stock indices such as the S&P 500 and Nasdaq also showed declines, strengthening the correlation between stocks and crypto assets. CryptoInside analysts believe that without an easing of the Federal Reserve’s policy or clarity in the regulation of cryptocurrencies, price recovery remains in question.

There are a lot of events on the economic calendar on Friday, and strong volatility is expected in the market.

News highlights

• The crypto market fell 14.7% to $2.64 trillion after US tariff measures on March 4.
• Bitcoin fell below $84,000, losing almost $980 million due to liquidations.
• US tariffs against Mexico, China and Canada have caused retaliatory tariffs and uncertainty.
• The fall of cryptocurrencies coincided with the collapse of stock markets and strengthens the correlation of assets.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute investment advice. CryptoInside does not guarantee the accuracy or completeness of the information and is not responsible for any damages associated with the use of this information.