Bitcoin Drops to $80K as Trump’s Economic Policies Spark Debate

On March 10, Bitcoin’s price dropped to $80,052, reflecting a 7% decline over the past 24 hours, as uncertainty surrounding former President Donald Trump’s economic policies continues to impact the market. As of the latest update, Bitcoin is trading at around $82,200.

According to crypto.news price tracker, the overall cryptocurrency market has seen a 7% decline, bringing its valuation to $2.77 trillion. Solana and XRP both registered 7% losses each, while Ethereum fell 8%, trading close to $2,000. Despite the downturn, Bitcoin’s dominance in the market remains steady at 58.2%.

Over the last 24 hours, the market downturn led to $616 million in liquidations, with long positions bearing the brunt of the losses at $540.49 million. Of that, Bitcoin alone accounted for $231 million in losses.

The broader market dip was sparked by increasing uncertainty surrounding President Trump’s economic policies. In a Fox News interview on March 9, Trump admitted that his economic policies would bring temporary pain to the U.S. economy. His comments, which included remarks on potential budget cuts and trade tariffs, have raised concerns about possible market volatility, causing caution among investors in both cryptocurrency and traditional financial markets.

Some analysts have drawn comparisons between the potential economic disruptions and the tough anti-inflation measures enacted by former Federal Reserve Chairman Paul Volcker in the 1980s. While Volcker’s policies were ultimately successful in stabilizing inflation and fostering long-term growth, they caused significant market instability in the short term.

Arthur Hayes, co-founder of BitMEX, has warned that Bitcoin could fall even further, potentially revisiting $78,000. He noted that many Bitcoin options are currently priced between $70,000 and $75,000, which could lead to additional volatility if the price enters that range.

Traders are now keeping a close eye on key economic reports set to be released later this week. These include the U.S. Consumer Price Index (CPI) on March 12 and the Producer Price Index (PPI) on March 13. These economic indicators could play a significant role in determining Bitcoin’s next price movement.