The crypto market is facing a sharp correction as Bitcoin price plunged to $80,000, dragging down a series of altcoins amid growing concerns about a US recession.
*Bitcoin continues to plummet, altcoins sink in red
On March 10, Bitcoin fell more than 4.2% in 24 hours, hitting $82,400 and even dipping to $80,200 at one point. This is a significant drop right after Bitcoin had just recovered slightly due to expectations of Canada renegotiating tariffs with the US.
Ethereum was also not immune to the sell-off, falling 5.3% on the day and 35% on the month, trading at $2,072—its lowest since December 2023. Among major altcoins, Dogecoin (DOGE) led the decline, losing 8.5% to $0.174, marking its lowest low since November 2024.
The entire altcoin market was in the red, down 7-10% in the past 24 hours. However, two tokens, Story Protocol's IP and Ethena's ENA, maintained their upward momentum, up 9.2% and 5.4% respectively, becoming rare bright spots in the market storm.
The Fear & Greed Index is currently at 20—corresponding to "extreme fear" sentiment, indicating investor panic since Bitcoin fell below $80,000 for the first time since November 2024.
Notably, Bitcoin Dominance—BTC's market capitalization relative to the total market—has surged to 64.29%, its highest level in over four years, reflecting the flow of money away from altcoins and into Bitcoin as a safe haven asset during periods of high volatility.
According to data from CoinGlass, the derivatives market has seen $529.69 million in liquidations in the past 24 hours, mostly from longs, indicating a growing level of panic.
The total crypto market capitalization fell 5.6% to $2.8 trillion—a significant decline from its peak of $3.8 trillion in December 2024. This is a sign that the positive effects of Donald Trump's election as US President are gradually fading, giving way to concerns about new economic policies.
US Bitcoin Reserve Fund Disappoints, Triggers Sell-Off
The sharp correction in Bitcoin came shortly after President Donald Trump signed an Executive Order on March 7, officially establishing the US Strategic Bitcoin Reserve.
According to this decree, the US government will not directly buy Bitcoin from the market, but the fund will be formed from the amount of BTC seized in criminal cases and asset seizures. Currently, the US controls about 198,109 BTC (equivalent to 16.1 billion USD), of which a portion may have to be returned to the rightful owners.
However, the market reacted negatively to this news. Investors expected the US government to buy more Bitcoin, but instead, the decree only required the Treasury and Commerce Departments to study the option of buying BTC without a specific plan. This disappointment contributed to the sell-off wave across the market.
Pressure from tariff policy and concerns about US economic recession
In addition to disappointment about Bitcoin reserves, the crypto market is also under great pressure from Donald Trump's new tariff policy.
Last week, the US officially imposed new tariffs on Canada, Mexico and China, causing global stocks to plummet. In that context, safe-haven money poured into gold, pushing the price of this precious metal to a record high, reducing Bitcoin's role as a "digital gold" asset and putting strong selling pressure on the crypto market.
Although major financial institutions have repeatedly warned of the risk of recession, US Treasury Secretary Howard Lutnick dismissed this scenario, asserting that Trump's tariff policy will help the US attract $1.3 trillion in new investment, expanding the economy.
However, even President Trump has not ruled out the possibility that the US economy could fall into recession this year. In an interview with Fox News on March 9, he admitted:
“I hate to speculate on things like that. But there will be a transition period, because we are doing great things. We are bringing prosperity back to America, that is the long-term goal.”
These statements have further increased concerns among investors. On the Polymarket prediction platform, the odds of a US recession in 2025 have increased to 38%, up 15% in March 2025 alone.
Crypto market faces “Kangaroo Market”
Amid economic uncertainty, traders and large investment funds are temporarily holding their ground, waiting for clearer signals from the US government before making a decision.
The market may enter a “Kangaroo Market” phase—high volatility but no clear trend. In the coming time, positive news from the crypto industry may help Bitcoin price recover, but macro factors such as economic recession or tax policy still have the potential to drag the market down further.
Overall, the crypto market is going through a difficult period, and individuals
Investors need to closely monitor global economic developments to have appropriate strategies in the coming time.
