Global markets plunged overnight as investors braced for key inflation data and potential shifts in Fed policy. Crypto also saw sharp declines, with Bitcoin and Ethereum leading the downturn amid regulatory and economic uncertainty.
Stock and Crypto Markets Drop as Investors Await Inflation Data
Wall Street continued its decline on Monday as investors prepared for key inflation data and reassessed the Federal Reserve’s policies. Meanwhile, the crypto market remained under pressure despite positive regulatory developments.
Source: BRICS News
Rising trade tensions and inflation fears are driving risk-averse sentiment. This has led to a decline in Bitcoin and Ethereum, mirroring stock market trends. The S&P 500 dropped 2.6%, Nasdaq-100 fell 3.1%, and Dow Jones Industrial Average lost 2.2% as traders moved away from risky assets ahead of the upcoming inflation report. Futures on the Nikkei 225 and Hang Seng also indicated continued pressure on Asian markets.
Bitcoin fell 5.8% to $76,838 in the past 24 hours, while Ethereum dropped 11.5% to $1,795, according to CoinGecko. Over the past 30 days, Bitcoin and Ethereum have lost 19% and 29%, respectively.
Read more: What Will The White House Do With The Cryptocurrency Market This Week
Why Are Bitcoin and Ethereum Falling?
The crypto market remains weak as investors assess the impact of trade tensions and former President Donald Trump’s Bitcoin Reserve Order. Bitcoin is down 4.8% to $81,729, while Ethereum has lost 8%, trading near $2,000. Dogecoin led the losses among the top 10 cryptocurrencies, dropping 13% to $0.16.
This downturn comes despite Trump signing an executive order to establish a Strategic Bitcoin Reserve Fund and creating a new crypto reserve system. Additionally, he is preparing to repeal restrictive crypto policies introduced by the Biden administration. This move may include dismantling “Operation Chokepoint 2.0,” a program believed to have limited crypto firms’ access to banking services.
Investors are now focused on the Consumer Price Index (CPI) report, set for release on Wednesday. CPI is expected to rise by 0.3% in February, down from 0.5% in January. Annual inflation is projected at 2.9%, slightly lower than last month’s 3%. However, any unexpected increase could delay Fed rate cuts, pressuring risk assets like stocks and crypto.
Trump-Backed WLF Faces $110M Crypto Loss
Source: Arkham
As markets decline, Donald Trump’s World Liberty Financial (WLF) is facing significant losses. The Trump-affiliated DeFi project recently made a $20 million crypto purchase, mainly Bitcoin and Ethereum, just hours before the White House’s first Crypto Summit.
However, data from Arkham Intelligence shows that WLF’s $336 million investment in nine cryptocurrencies is now worth only $226 million. The company’s portfolio is heavily concentrated in Ethereum, which makes up 65% of its holdings. WLF purchased ETH at an average price of $3,240 per token, but as of March 10, 2025, ETH is trading around $2,040. This steep decline has contributed to the company’s major losses.
Other holdings include Wrapped Bitcoin (wBTC), Tron (TRX), Movement Network (MOVE), AAVE, Chainlink (LINK), and Ethena (ENA). Despite diversifying its portfolio, WLF has suffered heavily from the ongoing market downturn.
Last week, WLF tripled its ETH holdings when prices briefly fell below $2,000, acquiring more tokens at an average price of $2,238. The firm also invested millions in wBTC and MOVE. However, these purchases have yet to offset its overall portfolio losses. WLF stated that it is not selling its assets but reallocating them for operational needs.
Elon Musk: X Hit by Large-Scale Cyberattack
Elon Musk, owner of X, confirmed that the platform suffered a “large-scale cyberattack” that disrupted access for some users. This news also impacted Tesla stock and the crypto market.
“We are attacked daily, but this time, significant resources were used. Either this is a large coordinated group or a nation-state,” Musk stated.
Although X quickly restored service, Musk suggested that the attack was ongoing. As of writing, Downdetector reported over 33,000 outage reports for X on March 10.
Musk made this announcement in response to a user who listed multiple events targeting his interests, including protests against the Department of Government Efficiency (DOGE) and vandalism at Tesla stores.
According to NBC News, at least 10 Tesla stores and vehicles have been vandalized, possibly linked to Musk’s involvement with the Trump administration.
Read more: X sees major outages as Musk claims ‘massive cyberattack’ hit platform
