Author: Spirit, Golden Finance

On March 10, 2025, the global financial market suffered a severe shock. The U.S. stock market caused a panic selling due to Trump's tariffs, with a market value of $4 trillion evaporating, and a cloud of recession was shrouded in recession. At the same time, the cryptocurrency market was not spared, and mainstream currencies such as Bitcoin and Ethereum plummeted across the board.

The cryptocurrency market "collectively falling": panic spread

As of 9 a.m. Beijing time on March 11, the cryptocurrency market in the past 12 hours was shrouded in a haze, which can be described as "collectively falling" and "a total plunge". The market panic has heated up significantly. Coinglass data shows that in the past 24 hours, the number of people who have lost their positions on the Internet exceeded 210,000, with the amount of liquidated positions reaching US$924 million, and the value of the largest single liquidated order was more than US$32 million. The market has experienced a severe deleveraging process.

Specifically, the price of Bitcoin continued to fall, falling below the key mark of $77,000 for a time. Bitcoin has fallen by more than 4%-5% in the past 12 hours. Ethereum's decline is even more fierce. Coinbase data shows that it has plummeted by more than 13% in the past 24 hours. Other mainstream currencies and altcoins such as ADA, SOL, and DOGE have also generally suffered heavy losses, and some currencies have even fallen by more than 10%-12%.

The "big earthquake" of US stocks: Trump's tariffs triggered market panic

The US stock market suffered the worst single-day plunge since 2025, and its market value instantly evaporated by $4 trillion, which can be called a "big earthquake." The S&P 500 fell 2.7% in a single day, the biggest drop this year; the Nasdaq index plummeted 4%, the largest single-day drop since September 2022, and the cumulative market value of the seven technology giants evaporated by more than US$750 billion. Tesla's stock price fell by more than 15%, setting its worst single-day performance since 2020.

The "hot point" of market panic is directly aimed at Trump's tariffs. Tariff measures against major trading partners such as Canada, Mexico and have raised deep market concerns about the escalation of the trade war and the global recession. Ayako Yoshioka, senior investment strategist at WealthEnhancement, pointed out that market sentiment has undergone a huge shift and the once effective strategies are no longer applicable.

Addition of multiple factors: Analysis of the deep reasons for the market plunge

The stock and currency markets both plummeted, which is the result of the superposition and resonance of the following risk factors:

1. Trump's tariffs and the shadow of the trade war: Trump's tariffs are the most direct fuse that triggered this market panic. Tariffs not only directly impact corporate profits, but also exacerbate global trade tensions and trigger investors' concerns about the recession.

2. Recession expectations are heating up: The negative impact of tariffs, coupled with the global economic downturn, has significantly increased market concerns about economic recession. U.S. Treasury yields fell sharply, and the Cboe volatility index soared to its highest level since August, both reflecting investmentThe person is extremely uneasy.

3. Overvalued valuation of technology stocks and profit-taking: In the past two years, technology stocks and large-cap stocks have been the main engines of market growth, accumulating huge gains, and valuations are also at historical highs. The market plummeted, and there were also factors such as technology stock valuation pullbacks and concentrated selling of profitable stocks.

4. The cryptocurrency market itself needs to pull back: The cryptocurrency market has also experienced a rapid rise recently. The price of Bitcoin once approached a historical high. The market itself has the demand for technical adjustments and profit-taking. External risk events have accelerated the pullback process.

Future Outlook: Short-term fluctuations are intensifying, and the long-term outlook is still unclear. Looking forward to the future, global financial markets, including the cryptocurrency market, may still maintain a violent fluctuation pattern in the short term. Investors need to be wary of the following risks:

1. Market panic may continue: Trump's tariff direction is still unclear, the risk of the trade war may continue to ferment, and market panic will be difficult to fade quickly in the short term.

2. U.S. stocks may face further downside risks: EvercoreISI analysts warn that fears of stagflation are intensifying, tariffs and economic uncertainty may lead to further declines in the S&P 500, and may even fall to 5,200 points. The Nasdaq Index has entered a technical pullback area, and the risk of bear market is approaching.

3. The cryptocurrency market may be under pressure in linkage: Against the backdrop of rising global risk aversion sentiment, the cryptocurrency market is unlikely to survive, and may continue to be dragged down by downward pressure on the external market, and may continue to fluctuate and adjust the situation in the short term.

4. Beware of the "black swan" event: The current global economy and geopolitical environment are complex, and sudden "black swan" events may still occur in the future, further aggravating market fluctuations.

In the long run, there is still great uncertainty in the future direction of the cryptocurrency market and traditional financial markets. On the one hand, technological innovation, shift and application expansion will still bring long-term growth potential to the cryptocurrency market; on the other hand, factors such as the downward risks of macroeconomics and the US economy will also restrict their long-term development.

Non-investment advice:

Faced with the current turbulent market environment, investors should maintain a cautious and optimistic attitude and adopt the following strategies:

Control positions and reduce leverage: During periods of severe market fluctuations, positions should be reduced, excessive leverage should be avoided, and risks should be strictly controlled.

Focus on safe-haven assets: When the market risk aversion sentiment heats up, safe-haven assets such as gold and bonds can be appropriately allocated to hedge risks.

Select high-quality targets: Whether it is stocks or cryptocurrencies, you should adhere to the concept of value investment and select high-quality targets with good fundamentals and long-term growth potential.

Keep attention to market trends: pay close attention to the global macroeconomic situation, changes and market sentiment, and adjust investment strategies in a timely manner.

Do a good job in risk management: both the cryptocurrency market and the stock market have high risks. Investors must fully recognize the risks and doBe good at risk management and avoid blindly chasing the rise and selling the fall.

The global market plunge on March 10, 2025 is the result of the resonance of multiple risk factors, indicating that market volatility may intensify in the future. Investors should remain vigilant, respond prudently, and seize long-term investment opportunities.