Analysts warned that crypto market volatility may increase as major macroeconomic development is running the risk-feeling among investors.
$ 500 billion shed a day in Crypto market
As Coby letterThe Crypto Bazaar has shed over $ 500 billion in the last 24 hours – US President Donald Trump’s weekend of a strategic Crypto Reserve reserve $ 100 billion below its value before the announcement of its weekend, including a basket of crypto’s assets, which includes atheram as bitcoin and atherium core holdings.
Coby letter analysts reported that after Trump’s announcement on reserve plans, the Global Crypto market increased from $ 2.7 trillion to $ 3.1 trillion in just 10 hours. But within a day, all the benefits disappeared, also dragged the market to $ 2.6 trillion.
According to analysts, there was a sharp upsurge, a “collosal retail trap”, which rapidly gave a tough competition to the traders, as Crypto Funds saw a record $ 2.6 billion outflow in late February – $ 500 million more than the previous record in 2024.
Bitcoin (BTC) took a hit, fell 3% from its pre-proclamation level and shed around $ 250 billion in the market cap in the last 12 hours, while the Ethereum (ETH) slipped to 8% below its earlier rebound, $ 2,002.
In addition to the Crypto market, the S&P 500 index fell nearly 5%, while technical shares such as NVidia also performed the tanker.
Crypto is no longer a safe shelter
On the evening of March 3, Trump announced that the US would slap 25% tariffs on Canada and Mexico starting on March 4, stopping any expectation for the last minute deal to reduce business tension. In response, both countries have promised to hit back.
China increased stress after moving the tariff on major American imports to 10–15% of tariffs, such as 20% tariff on sugar imports to be effective on the same day.
“Here the real driver is a global step towards risk-closing business. -As business war stress increases and economic policy increases uncertainty, all risky property is falling, ”Kobe wrote in an X post.
According to analysts, investors have lost their confidence in bitcoin as a safe shelter property, and investors are choosing to sleep instead.
Since January 1, the price of gold has increased by 10%, while the price of BTC has reduced by about 10% in the same period.
“Crypto is no longer seen as a safe shelter site,” analysts said.
More volatility
Analysts warned that Crypto could face “even forest swings” in the coming weeks.
In particular, the instability of Goldman Sachs has increased from 1.4 in December to 9.1 in December, now 10 -two -two -two -big -two -two -time shocks during the previous major market shock. According to Kobyi analysts, this spike indicates that excessive instability is becoming a new ideal.
Furthermore, a bank of America survey quoted by him shows that investors are not expecting bitcoins to conduct well in the coming months. Only 3% of respondents believe that BTC will perform the best in full scale trade war. In contrast, see 58% gold as the top safe-hovel property for 2025.
However, Matt Mena, Crypto Research Strategist in 21 surge, was suggested in comments for Crypto.
According to him, “many investors had estimated these tricks” and the trading resume is expected to see some extent stabilization.
“Despite the short -term volatility, the long -term approach to the Crypto region remains bright,” Mena told Crypto.NuS, “wider structural trends in favor of institutional adoption,” to remain intact.
