Main to remember
- The cryptography market has lost around $ 500 billion in reaction to Trump’s pricing announcement.
- XRP, ADA and Sol recorded two -digit losses after their recent rallies.
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About 500 billion dollars have been wiped out of the cryptography market in the last 24 hours before the Trump prices deadline.
XRP, Cardano (ADA) and Solana (soil) – The three main cryptographic assets that have displayed major gains on Trump’s proposed cryptography reserve – have now undergone steep losses, displaying two -digit reductions as changes in market feels.
According to Coingecko data, XRP has dropped by 17% in the last 24 hours, erasing the gains that have followed Trump’s previous declaration on the inclusion of cryptographic assets in the American reserve. The asset had already jumped more than 25%, reaching almost $ 3.
The ADA and the soil experienced similar declines, lowering approximately 25% and 20% respectively. ADA, who had jumped more than 75% to more than $ 1 Sunday, withdrew below $ 0.8. Sol rose from $ 177 to $ 135.
The total market capitalization of cryptography has decreased by more than 12% in the last 24 hours. Bitcoin, after exceeding $ 94,000 on Sunday, fell. The digital asset is now negotiated at around $ 83,700, down almost 10%.
The second largest cryptographic asset, Ethereum, is down approximately 15%, while many parts of lower caps are even more down.
Prices on Canada and Mexico take effect tomorrow
The trade war quickly fears the threshing media that had built around the American crypto reserve.
The market slowdown has intensified after Trump confirmed that 25% of prices in Canada and Mexico would each take effect on Tuesday.
“They will have to have a price. So what they have to do is build their car factories – frankly – and other things in the United States, in which case they have no price, “said Trump.
Regarding China, the White House also announced a tariff of 20% on Chinese imports. Initially, a tariff of 10% was imposed and, on March 4, 2025, an additional 10% rate was added.
This marks a strong escalation in the American-Chinese trade war, the prices increasing much faster than during the first term of Trump.
These prices increase the cost of trade between the United States, Canada and Mexico, which could affect businesses and economic growth.
Reduced economic growth forecasts
The American economy could contract at its fastest rate since the locking of COVVI-19, according to the GDPNOW model of the Federal Bank of the Reserve of the Atlanta reserve, which now projects a 2.8% drop in gross domestic product for the first quarter of 2025.
Barely a month ago, the same model estimated that the economy was on the right track for growth of almost four percent. Although GDP forecasts can be volatile, other economic indicators – such as a record trade deficit, a decrease in consumer confidence and a slowdown in expenses – strengthen concerns concerning a slowdown in deepening.
If carried out, this contraction could mark the beginning of what some analysts call “Trump intervention”, making comparisons with the strong economic decline of 2020.
How did it affect crypto?
According to Kobeissi’s letter, the assembly of economic uncertainty and fears of the trade war have already weighed on the financial markets.
The real engine here is the world movement towards the risk trade.
As the tensions of trade war are increasing and the uncertainty of economic policy widens, all risky assets decrease.
This has been observed in the actions, the crypto and the prices of oil that have all dropped strongly today.
The shelters are booming. pic.twitter.com/quffcdwgy
– The Kobeissi letter (@kobeissiletter) March 4, 2025
The financial markets have experienced a sudden sale in the past hours, and the slowdown has been largely motivated by the weakness of the US stock market, launched by recent announcements by President Trump.
The slowdown in the stock market has spread in crypto, as investors have sold risky assets in response to economic uncertainty. Higher prices could slow down economic growth, reducing investors’ appetite for speculative assets such as Bitcoin and Altcoins.
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