Causes of the Crypto Market and Stock Down, Check Out These 5 Points!

Bittime - The US stock market and crypto market experienced a sharp decline on March 10, 2025. What caused the stock market and crypto market to go down? This article will discuss 5 causal factors.

Wall Street capitalization shrank by more than $1.75 trillion (around IDR 28,700 trillion). Meanwhile, Bitcoin (BTC) fell to $77,393 (around IDR 1.27 billion), and the total crypto market capitalization fell to $2.57 trillion (around IDR 42,200 trillion). 

This phenomenon certainly makes investors confused. Actually, what caused the stock and crypto markets to go down? Let's explore the five main factors causing it.

5 Factors Causing the Crypto Market and Stock Down

Source: Moneycontrol

At least, there are 5 main factors causing the weakening of the crypto and stock markets. The following are the factors:

1. Economic Policy Uncertainty

Uncertain economic policies are often the main trigger for market volatility. President Donald Trump recently announced new tariffs on imports from Canada, Mexico and China, sparking fears of a global trade war. 

Markets responded negatively, with the Dow Jones falling 2.3%, the S&P 500 falling 3.1%, and the Nasdaq shedding 4.3%. This uncertainty makes investors avoid risky assets, including stocks and cryptocurrencies.

Read also: 4 Factors That Influence Bitcoin Prices Are Now Down!

2. Disappointment With the U.S. Crypto Strategic Reserve

On March 6, 2025, President Trump signed an executive order establishing U.S. Crypto Strategic Reserve. Unfortunately, this policy does not directly cover purchase Bitcoin, which disappointed investors. 

As a result, the price of Bitcoin immediately fell 4%, trigger liquidation worth $650.8 million (around Rp. 10.7 trillion) in the first 24 hours. This negative sentiment is reinforced by Crypto Fear & Greed Index which falls to the level 20, signaling extreme panic in the crypto market.

3. Outflow of Funds from Crypto Assets

Investors are increasingly careful about placing their funds in the crypto market. In the week ending March 7, 2025, crypto investment products recorded an outflow of funds of $876 million (around IDR 14.4 trillion). 

If totaled over the last four weeks, this value reaches $4.75 billion (around IDR 77.9 trillion), indicating a risk-off trend among investors.

Bitcoin was the asset most affected, with outflows reaching $756 million (around IDR 12.4 trillion). This flow of funds indicates that many investors prefer to stay away from high-risk assets due to economic and geopolitical uncertainty.

4. Impact of the Bybit Hack

Cyberattacks are still a major threat to the crypto market. On February 21, 2025, crypto exchange Bybit experienced hack worth $1.46 billion (around IDR 23.9 trillion) allegedly done by North Korean hackers. 

This incident shook investors' confidence in the security of crypto trading platforms.

After this incident, many users began to withdraw their assets from crypto exchanges to avoid the risk of losing funds. As a result, selling pressure increased, causing crypto prices to fall deeper.

Read also: List of the Best US Coins Currently, Number 1 XRP!

5. Market Volatility and Fear Sentiment

High volatility in the stock and crypto markets makes investors increasingly wary. Trump's latest statements regarding a possible recession exacerbate the uncertainty. 

Tesla shares fell 14%, while the S&P 500 technology sector fell 4.2%. With this continued pressure, the S&P 500 index even entered negative territory for this year's performance, marking a weakening market trend in recent days.

Conclusion

The crypto and stock markets are currently facing pressure from various directions, ranging from uncertain economic policies, massive outflows of investment funds, to cyber attacks that undermine investor confidence. 

All of these factors contribute to volatility that makes the market experience significant declines. Investors need to remain vigilant and follow the latest developments to better manage risks.

Read also: PAWS Price Prediction 2025: How Much Will It Be Worth After Pre-Market?

FAQ

1. Why do the crypto and stock markets often fall together?

The crypto and stock markets are related because they are both influenced by investor sentiment, global economic policies, and capital flows into or out of risk assets.

2. What is the impact of the exit of investment funds from the crypto market?

The large exit of investment funds from the crypto market reduces liquidity and makes asset prices more susceptible to large fluctuations, which could exacerbate downward price trends.

3. How do investors deal with market volatility?

Investors can deal with volatility by diversifying their portfolios, not panic selling assets when prices fall, and staying abreast of the latest market news and analysis.

4. Is Bitcoin still an asset worth investing in?

Despite its high volatility, Bitcoin is still considered an asset with long-term growth potential. However, investors should consider the risks and investment strategies that suit their profile.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference 

Bitcoin.comNews, 5 Factors Behind Wall Street's and Crypto's Trillion-Dollar Market Meltdown, accessed March 11, 2025.

coinmarketcap, Coinmarketcap.com, accessed March 11, 2025.

Author: Y