Why Crypto Market is Down Today?

Why Is Crypto Crashing and Will It Recover? Trump Tariffs Crash Market

Why Crypto Market is Down Today because of some reasons . At $2.77 trillion, the overall cryptocurrency market experienced an abrupt fall, which means a total drop of 8.64% incurred within 24 hours. The abrupt plunge took place after Trump announced the investment and the imposition of the new tariff which created global financial market vectors.

Why Is Crypto Crashing & Will It Recover?

The digital money market is now facing a big bang, driven by factors that include global economic uncertainty, the aftermath of Trump-era tariffs, and the panic of investors. Trade wars, such as the ongoing U.S.-China tensions, have led to widespread instability that in turn has forced investors to move away from riskier assets like Bitcoin and Ethereum to some other more reliable options. Tariffs have made the global economy weak, which created fears of inflation and a slowdown in growth, all the more causing the market to be more volatile. In this age of uncertainty, some traders are offloading their crypto assets thereby deepening the crisis. Nevertheless, even with the current downturn, the past has demonstrated the potential of crypto to make a comeback. Its stability, the increase in demand for blockchain technology, and the prospect of clear regulations in the future might be some of the measures that may result in the revival if the economic situation returns to normal. Although the chances of recovery are quite low, the essential characteristics of cryptocurrency and its position as a replacement for conventional finance can be the basis for a long-lasting comeback.

The Kobeissi Letter has noticed that the tariff announcement was a major event, which affected the stock market. The stock market plunged by $1.5 trillion in one day, causing the S&P 500 to come under great stress. This occurred between 10:00 AM and 3:30 PM ET.

Trump Crypto Reserve Announcement: A Pump-and-Dump Strategy?

Nevertheless, the project’s scheduling and the way it was carried out have become the focus of questions about morality. Right after Facebook’s announcement, the Trump-connected $Trump meme coin got into circulation, encountered a quick upsurge but then experienced a sharp decline in value. What we saw at that time can be followed by classic pump-and-dump schemes in which the price is inflated artificially to attract investors to buy it, only to be undermined later by a sell-off that forces late investors to deal with losses.

The ethical experts have gone against the government taking part in cryptocurrency especially using cryptos associated with the President, saying they are involved in unnecessary conflicts of interest and are raising the issue of the constitution. They have criticized the attempts as an unethical act, which might suggest that the crypto market operates on a highly unreliable note and entails emoluments breaches by allowing certain groups and foreign states to affect the President via cryptocurrency investments.
Such incidents have been replied to by implementing certain legislative measures like the suggested Modern Emoluments and Malfeasance Enforcement Act (MEME Act). This act is supposed to forbid Presidents from issuing or endorsing financial assets of senior White House officials or members of Congress, who want to keep themselves away from abusive power practices and to save investors from market manipulative practices.

Fear and Greed Index Signals Extreme Fear

As of March 7, 2025, the cryptocurrency market’s Fear and Greed Index stands at 34, indicating a state of fear among investors.

This aligns with the recent market events, where Bitcoin (BTC) underwent an 11% loss last day, and altcoins like Ethereum (ETH) and XRP saw declines of 13% and 14%, in that order.

Current Market Performance

Bitcoin(BTC): On March 7, 2025, Bitcoin (BTC) is listed at around $88,931 which is a fall 2.66% in comparison with the previous close.
Ethereum(ETH): It was informed already that as of March 7th, 2025, an Ethereum coin worth $2,192.74, with a decrease of 4.52%, is trading in the market.
XRP: XRP trading price on March 7, 2025, was $2.53, which means it fell about 3.07% as compared to the previous day’s close.

Will the Market Recover or Crash Further?

Despite the current downtrend, some factors could lead to a recovery:
FOMC Meeting Insights: If the Federal Reserve signals future rate cuts, risk appetite for cryptos could return.
SEC Crypto ETF Approvals: The active stance of the SEC on potential XRP ETFs and other upcoming ETFs could attract new investors.
Macroeconomic Data: Upcoming PMI reports and consumer sentiment data may provide insights into economic stability, influencing crypto market trends.

While assessing the development of the digital currency market in the upcoming 5 years, the market is a still volatile one but it is also very promising. The factors that could keep long-term growth are institutional adoption, regulatory clarity, and technology advancements in blockchain. However, short-term changes that are driven by macroeconomic events will still strongly impact the market.