The cryptocurrencies operate down This Monday, March 10, in the midst of a growing tension for Donald Trump’s tariffs and world impact. Within that framework, Bitcoin yields 2.2% in the last 24 hours and operates at US $82,800, according to Binance. Meanwhile, Ethereum falls 1.4% au $ 2,100.
The same happens with the rest of the Altcoins: The biggest decreases are registered by Solana (-5.1%), Dogecoin (-5%), Avalanche (-4.5%) and Cardano (-4.1%).
Extreme fear in the cryptocurrency market
The general collapse of cryptoactive led to Crypto fear and greed index (‘Crypto Fear & Greed Index’) to reach its lowest level since mid -2023. This index reflects an “extreme fear” in the market, especially given the annual loss of 12% of Bitcoin, which generates short -term uncertainty about the future of cryptocurrencies.
Recently, The markets faced several setbacks. First of all, President Donald Trump’s proposal to create a strategic cryptoactive reserve in the USA He disappointed investors. The US government announced that this reserve would be limited, for now, the cryptoactives seized by the Executive, eliminating the hope that the US would become a Bitcoin’s mass buyer and other cryptocurrencies.
Besides, The first cryptocurrency summit organized by the White House did not meet market expectations. Despite the presence of important companies such as Coinbase, the event only resulted in the creation of a legislative framework for the ‘stablecoins’, scheduled for August, and a more flexible promise of regulation, which some analysts considered a “failure.”
On the other hand, The cryptoactives continue to be pressed by the commercial war initiated by the new US president. Although a pause has been announced in tariffs to Mexico and Canada until April 2, uncertainty about Trump’s commercial decisions continues to affect the market. While Mexico prefers to wait to implement its answers, Canada has begun to apply tariffs, although it has postponed a new round for $ 125,000 million.
The growing commercial tension fueled the fears of a recession in the US. After an interview in ‘Fox News’, Trump was unclear in denying the possibility of recession, which generated even more uncertainty. Although Howard Lutnick, secretary of Commerce, said there will be no recession, his statements failed to calm the fears of the market.
The cryptoactive follow the negative tendency of US actions, Especially after the February Employment Report, which showed a creation of 151,000 jobs, less than expected. Although the labor market continues to show resilience, there are signals of economic slowdown, as shown by the projection of a negative growth of -2.8% for the first quarter, according to the GDPnow model of the Federal Reserve of Atlanta.
The federal reserve position regarding interest rates also affected the market. President Jerome Powell emphasized that the flexibility of monetary policy will not be carried out Until there are clear signs that inflation approaches the 2%target. This reduced the expectations of official rates cuts this year, which, together with the recent economic data, continues to press cryptoactives and actions in general.
Source: Ambito
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