5 Reasons That Caused Wall Street And Crypto's Trillion-Dollar Market Meltdown

in LeoFinance20 hours ago

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Hello there I hope you are doing well and I am lucky ali Yesterday, crypto and United States stock markets plunged, with US equities losing more than $1.75 trillion from Wall Street amid policy uncertainty, external shocks, and investor withdrawals. Billions have also exited the cryptocurrency market.


Global markets drop: Trump tariffs, crypto reserve disappointment extend losses


on this Monday, Wall Street screens flashed red as stock indexes crashed in the US, Bitcoin dropped to $77,393 and with this big crash, the cryptocurrency market lost billions to hit $2.57 trillion. both economy's Investors tried to make sense of the chaos. Let's check the five key factors behind the market crash.


  • 1.Economic policy uncertainty : The US President's tariff announcements in 2025 on imports from Mexico, Canada, and China have fueled fears of an economic recession and global trade war. With him refusing to rule out the possibility of a recession, the S&P 500 fell 3.1%, the Dow declined 2.3% and the Nasdaq Composite fell 4.3%, and you know its worst day since 2022.

  • 2.Frustration with the US crypto strategic reserve: they excluded immediate bitcoin purchases and that is the reason that led to a 4% drop in the BTC crypto price and a loss of $650.80 million in cryptocurrency liquidations within the first 24 hours but the good thing is The March 6 executive order established the US crypto strategic reserve which will benefit later. The interesting thing is The Cryptocurrency Fear & Greed Index reached 20 today, indicating a highly pessimistic sentiment from crypto investors.

  • 3.Crypto investment outflows: When we see the outflows then Bitcoin alone saw outflows of $756 million and Assets under management fell to $142 billion. So when we see Cryptocurrency investment products saw outflows of $876 million for the week ended March 7, taking the four-week total to $4.75 billion.

  • 4.Impact of the Bybit Hack: Do you remember the recent Bybit hack that happened on February 21, 2025? , which resulted in a loss of $1.46 billion this happened due to acts linked to the country North Korea, which continues to destabilize the cryptocurrency market. The breach eroded trust in exchanges and panic, leading to a surge in sell-offs and emergency loans to replenish storage.

  • 5.Market Volatility and Fear: President Donald Trump's latest bearish comments and policies increased volatility in the crypto and others. while the S&P tech sector fell 4.2% and Tesla shares fell 14%. The S&P 500 entered negative year-to-date territory, marking four consecutive days of declines. And you already know what happened to crypto.

So these are the reasons that caused a crash in the global market and especially we have talked about crypto here. Do you know more hidden reasons? then let's disucss in the comments. Share it and goodbye for now.


Image source 1, 2, 3


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185300304_441507187470261_6630906744872723300_n-removebg-preview.pngHi I am lucky ali from gujarat, india. I am a crypto enthusiast, blogger, and SEO developer. I am always interested in learning new things and getting new experiences. You can find me on hive, twitter and discord (Lucky Ali#6343). Sharing is caring, Thank you hive family ♥

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