President Donald Trump announces unexpectedly exciting days caused by the strategic crypto reserve fund composed of BTC, ETH, SOL, SOL, ADA and XRP, which is not overly positive. On the morning of March 4, the cryptocurrency market continued to witness a wide range of “reds”, leading to a wave of suspicion and selling in the crypto market, which can be attributed to a combination of factors based on current market dynamics and recent events.
How to dump the market?
According to CoinMarketCap, the Bitcoin price was unexpected this morning (March 4, 2025) (US time). In 24 hours, the asset’s price fell 11%, reaching $82,400/BTC a little bit, and eliminating more than $200 billion in market capitalization.
Source: Xiaodian
Not only BTC, the entire market fell into red, with Ethereum down 15.6% in the past 24 hours, XRP down 18.7%, BNB down 9%, Solana down 20%, Dogecoin down 16.4%, and Cardano down 26.3% in the same period.
Stock markets have observed a similar trend as leading stocks experienced a decline after Trump announced tariffs would take effect tomorrow.
Source: Cointelegraph
The reasons behind the red stretch of the entire market
Bitcoin ETFs are out of large quantities
In the week from February 24 to 28, cryptocurrency ETFs experienced significant withdrawals, with the flow of Bitcoin funds at $2.61 billion and the loss of Ethereum funds at $335.3 million. On February 26, a record $1 billion was withdrawn from Bitcoin ETFs in one day, reflecting cautious market sentiment.
Among the biggest outflows, BlackRock’s IBIT leads with $1.17 billion, followed by Fidelity’s FBTC at $568.65 million and Grayscale’s GBTC at $188.84 million. Other funds also have major withdrawals, including BTC of Gray Cream ($147.93 million), BRRR of Valkyrie ($112.84 million) and BTCW of Wisdomtree ($95.1 million).
Despite the continued trend of withdrawal, Bitcoin ETFs saw very little inflows on the last day of the week, with a slight shift after eight consecutive days of outflows.
Source: Cointelegraph
Bybit cyber attack
One of the reasons given is Bybit cyber attack – This leads to the sale of ETH. The latest cyber attack on the centralized crypto exchange Bybit, conducted by a well-known hacker group, led to ETH stolen more than $1.4 billion in ETH, marking it as the largest cryptocurrency robbery ever.
On March 1, cyber hackers moved another 62,200 ETH, leaving only 156,500 Ethereum from the initial shipping, as crypto analysts reported embercn. The latest campaign raises the amount of full money laundering to about 343,000 ETH, accounting for 68.7% of the 499,000 ETH of the 499,000 ETH hit on February 21. At this rate, it is estimated that the remaining funds will be laundered today.
This huge sell-out pressure, coupled with hackers potentially unloading the remaining 156,500 ETH, could flood the market and drive Ethereum prices to fall. Ethereum’s performance also impacts the wider altcoin market, resulting in a synchronous decline in coins such as XRP (-18.7%), Solana (-20%), Cardano (-26.3%).
Revenge from China
according to The New York TimesThe response from U.S. partners, especially China, escalated a global dispute that shocked government and international trade. Mexico and Canada are two other countries under Trump’s tariffs and have not responded yet.
Earlier on Tuesday, China proposed widespread tariffs on U.S. food exports on the latest trade measures taken by the Trump administration. This move has exacerbated global trade tensions related to many countries. Previously, Mr. Trump raised tariffs by almost 20% on almost all goods from China. Earlier, he filed a 10% tariff on February 4, followed by another round of tariffs on Tuesday.
China’s Treasury Ministry announced that it would impose a 15% tariff on imports of U.S. chicken, wheat, corn and cotton. In addition, a 10% tariff is issued on products such as sorghum, soybeans, pork, beef, seafood, fruits, vegetables and dairy products. This has raised concerns about the ongoing trade war, which has made investors increasingly cautious and more deliberate in their investment decisions.
