The cryptocurrency market erased all gains from President Trump’s US Crypto Strategic Reserve announcement, plunging by over 14.7% in seven days to reach $2.7 trillion on March 10.
Top cryptocurrencies and their 24-hour performances. Source: Coin360
Several factors have contributed to the latest drop in crypto prices, including:
Trump’s acknowledgement that his policies will cause short-term pain to the economy.
Investors are risk-off amid the continued outflows from crypto investment products.
TOTAL drops toward the technical target of a descending triangle.
Trump acknowledges short-term pain for economy
President Trump’s recent statements have cast a shadow over the crypto market, tempering the enthusiasm that followed his pro-crypto rhetoric earlier in 2025.
Key points:
Bitcoin (BTC) declined 4% in the last 24 hours.
Ether (ETH) is down 3.2% over the last 24 hours to trade just above $2,000.
Solana (SOL) and XRP (XRP) have also recorded losses, down 7.2% and 4.5%, respectively.
Compounding the issue are the significant liquidations in the derivatives market.
A total of $650.80 million in liquidations has been recorded in the past 24 hours.
Long positions took the hardest hit, with $595.75 million liquidated.
Crypto market liquidation heatmap. Source: CoinGlass
Bitcoin and Ethereum were the biggest casualties, with $264.22 million and $114.76 million in liquidations, respectively.
When long positions are liquidated, traders’ holdings are automatically sold, increasing market supply and driving prices lower.
More critically, US President Donald Trump acknowledged that markets could see short-term pain from his policies, including the trade tariffs on Canada, Mexico, and China and budget-cutting plans.
“There could be a little disruption,” said Trump in an interview with Fox News, adding:
“If you look at China, they have a 100-year perspective… we go by quarters. What we’re doing is building a foundation for the future.”
The market, which surged post-election on hopes of a deregulated, crypto-friendly administration, is now grappling with the reality that Trump’s broader economic agenda may introduce headwinds before any crypto-specific benefits materialize.
Investors continue de-risking from crypto funds
The crypto market’s ongoing correction aligns with the huge capital outflows from crypto investment products.
Key takeaways:
Digital asset investment products saw outflows for the fourth week in a row, totaling $876 million during the week ending March 7, as per CoinShares report.
This brings outflows to $4.75 billion in the last four weeks, reducing the year-to-date inflows to $2.6 billion.
This indicates institutional investors decreased their exposure to digital assets.
Bitcoin saw the biggest share of outflows, totaling $756 million.
Total assets under management have declined by $39 billion from their peak to the current value of $142 billion, the lowest point since mid-November 2024.
Capital flows for crypto investment products. Source: CoinShares
CoinShares head of research James Butterfill attributed this to “negative sentiment,” suggesting “capitulation” among investors.
“Although this indicates a slowdown in the pace of outflows, investor sentiment remains bearish. ”
Additionally, the Crypto Fear & Greed Index plummeted to 10 on March 10, its lowest since July 2022, indicating “extreme fear.”
The Crypto Fear & Greed Index. Source: Alternative.me
TOTAL validates descending triangle
From a technical perspective, today’s crypto market’s decline is part of a correction trend that saw TOTAL—the total market capitalization of all cryptocurrencies—drop below a descending triangle pattern.
A descending triangle is a bearish continuation pattern, forming when the price makes lower highs while maintaining a flat support level at the bottom.
The pattern is confirmed when the price breaks below the support level with high volume and drops by as much as the triangle’s maximum height.
As of March 10, TOTAL had fallen to the pattern’s target of $2.6 trillion at the 50-weekly simple moving average (SMA).
TOTAL/USD weekly chart. Source: Cointelegraph/TradingView
If selling pressure persists, the 100–week SMA at $2 trillion could become the next downside target.
Holding the 50-week SMA as support may strengthen the ongoing rebound toward the pattern’s lower trendline, aligning with the $3.1 trillion level.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
