On March 4, 2025, both cryptocurrency and traditional stock markets experienced significant downturns, causing widespread concern among investors. Bitcoin (BTC) fell below $85,000, Ethereum (ETH) declined by over 10%, and altcoins such as Solana (SOL) and XRP suffered double-digit percentage losses. Concurrently, the S&P 500 index dropped by 2.5%, with major technology companies like NVIDIA and Tesla losing substantial market capitalization. Several interconnected factors contributed to this market turmoil.
Escalation of Global Trade Tensions
A primary catalyst for the market declines was the announcement by President Donald Trump of new tariffs: a 25% levy on imports from Canada and Mexico, and an additional 10% tariff on Chinese goods. These measures intensified existing global trade tensions, leading to sharp declines in U.S. markets. The Nasdaq Composite fell by 2.6%, the S&P 500 by 1.8%, and the Dow Jones
