Global markets fell into a night as investors were critical inflation data and potential changes in Fed policies. Cryptocurrencies have also seen a sharp decline, with Bitcoin and Ethereum causing recessions amid regulatory and economic uncertainty.
Stocks and crypto markets fall as investors await inflation data
Wall Street continued to decline on Monday as investors prepare for key inflation data and reassess the Fed’s policy. Meanwhile, despite positive regulatory developments, the cryptocurrency market remains under pressure.
Source: BRICS News
Rising trade tensions and inflation fears are driving risk aversion sentiment. This led to a decline in Bitcoin and Ethereum, reflecting the trend in the stock market. The S&P 500 fell 2.6%, the Nasdaq Stock-100 fell 3.1%, and the Dow Jones Industrial Average fell 2.2%, as traders departed from risky assets ahead of the upcoming inflation report. Futures of Nikkei 225 and Hang Seng also expressed continued pressure on the Asian market.
Bitcoin has dropped 5.8% to $76,838 in the past 24 hours, while Ethereum has dropped to 11.5% to $1,795, according to Coingecko. Bitcoin and Ethereum lost 19% and 29% respectively over the past 30 days.
Read more: How the White House will handle the cryptocurrency market this week
Why are Bitcoin and Ethereum falling?
Crypto markets remain weak as investors assess trade tensions and former President Donald Trump’s Bitcoin reserve order. Bitcoin fell 4.8% to $81,729, while Ethereum lost 8% and traded nearly $2,000. Dogecoin led the loss of the top 10 cryptocurrencies, down 13% to $0.16.
The decline has been reduced despite Trump signing a strategic Bitcoin reserve fund and creating a new crypto reserve system. In addition, he is also preparing to abolish the restrictive encryption policy proposed by the Biden administration. The move could include the removal of the “Conlakepoint 2.0 Operation”, a program believed to have limited access to banking services from cryptocurrency companies.
Now, investors are focused on the Consumer Price Index (CPI) report, which will be released on Wednesday. CPI is expected to rise 0.3% in February, down from 0.5% in January. The annual inflation rate is expected to be 2.9%, slightly lower than 3% last month. However, any unexpected increase could delay the Fed’s tax cuts, thus pressureing risky assets such as stocks and cryptocurrencies.
Trump-backed WLF faces $110 million cryptocurrency loss
Source: Arkham
As the market declines, Donald Trump’s World Free Finance (WLF) faces huge losses. The Trump-affiliated Defi project recently purchased $20 million in cryptocurrencies, 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 worth only $226 million. The company’s portfolio is heavily concentrated in Ethereum, accounting for 65% of its stake. WLF buys ETH at an average price, at $3,240 per token, but as of March 10, 2025, ETH is trading at about $2,040. This sharp decline has caused significant losses to the company.
Other shares include Packaging Bitcoin (WBTC), TRON (TRX), Movement Network (MOVE), AAVE, Chainlink (link) and Ethena (Ena) (ENA). Despite diversifying its portfolio, the WLF still suffered a significant hardship due to the ongoing market recession.
Last week, when the price briefly fell below $2,000 and at an average price of $2,238, WLF’s ETH holding tripled. The company also invested millions of dollars in WBTC and moved. However, these purchases have not offset their overall portfolio losses. WLF said it is not selling its assets, but redistributes them to operational needs.
Elon Musk: X is hit by a massive cyberattack
X’s owner Elon Musk confirmed the platform suffered a “massive cyber attack” that undermined access to certain users. The news also affected Tesla stock and cryptocurrency markets.
“We are attacked every day, but this time we use a lot of resources. It’s either a large coordination group or a nation-state,” Musk said.
Although X quickly resumed service, Musk suggested the attack was in progress. As of this writing, the dropper reported over 33,000 outages for X on March 10.
Musk’s announcement was a response to users who listed multiple events targeting their interests, including protests against the Department of Government Efficiency (DOGE) and vandalism at Tesla Store.
According to NBC News, at least 10 Tesla stores and vehicles have been damaged, which may be related to Musk’s involvement in the Trump administration.
Read more: X sees Musk claiming “substantial cyber attack” hits the platform’s main disruption
