Why is Bitcoin Down? Bitcoin Plunges as Trump’s Tariffs Take Effect

Bitcoin (BTC) experienced significant fluctuations over March 16 and 17, 2025, dropping 6.5% from $87,870 (March 15 close, per CoinMarketCap) to a low of $82,164 by midnight IST on March 16, before rebounding to $84,152 by 12:09 PM IST on March 17, a net decline of 4.2% over the 48-hour period.

The global crypto market cap fell 4.8% to $2.64 trillion, reflecting broader market unease. Bitcoin’s market dominance held steady at 59.3%, with a market cap of $1.67 trillion, while trading volume surged to $43.21 billion, driven by liquidations and recovery attempts.

Why is Crypto Market Down Today? Key Observations

• Market Performance: Bitcoin dipped to $82,164 by midnight IST on March 16, shedding $110 billion in market cap within 24 hours, per X posts tracking real-time movements, before recovering to $84,152 by midday March 17. The Bitcoin Fear and Greed Index fell to 42 (Fear) from 45, indicating persistent caution amid tariff-related volatility.
• Altcoin Movements: Ethereum (ETH) dropped 6.2% to $1,880 by March 16 midnight, recovering slightly to $1,926 by March 17, 12:09 PM IST (net 4.9% decline). XRP fell 7.5% to $1.58, Solana (SOL) declined 6.8% to $109, Cardano (ADA) shed 8.1% to $0.53, and Dogecoin (DOGE) fell 5.8% to $0.165, all showing partial recoveries by March 17 midday.

Top Impactful News (March 16–17 Specific):

• Dip-Buying Emerges on March 17: By early March 17 (06:00–12:00 IST), X posts noted increased buying activity, with BTC climbing back to $84,152, suggesting dip-buying amid hopes of stabilization despite tariff pressures.
• Liquidations Surge on March 16: Over $380 million in positions were liquidated on March 16, with $320 million from longs, peaking around 20:00–22:00 IST as BTC fell below $83,000, driven by tariff escalation fears, per X posts.
• Mexico’s Tariff Threat Intensifies: On March 16, Mexico finalized additional tariffs on $10 billion of U.S. exports, effective March 17, in retaliation to Trump’s 25% tariffs on Canada/Mexico and 20% on China (effective March 4), further spooking markets, per X and web reports.

Technicals: Why is Bitcoin Down?

This section reflects the technical analysis based on Bitcoin’s price of $84,152 by 12:09 PM IST on March 17, 2025:

• Price Movement: BTC dropped 6.5% from $87,870 (March 15 close) to $82,164 by March 16 midnight, recovering to $84,152 by March 17 midday (net 4.2% decline over 48 hours), reflecting a 36% correction from its $110,000 ATH earlier in 2025.
• Chart Patterns: BTC broke below the ascending triangle pattern in the 1-day (1D) timeframe on February 24. After dipping to $82,164 on March 16, it held above $80,000 support, with $82,000–$84,000 as current support. The next support is $80,000, with $85,000 as resistance and $70,000 as a deeper potential bottom.

Market Reaction and Outlook: Why Bitcoin is Down Today

• Bitcoin’s volatility, with a $43.21 billion trading volume, was triggered by a $380 million liquidation wave on March 16, fueled by Mexico’s tariff escalation deepening trade war fears from Trump’s policies (Strategic Reserve signed March 6 lacked buying plans). X posts noted panic selling on March 16, followed by dip-buying on March 17 lifting BTC to $84,152 by midday IST. Altcoins tracked BTC’s pattern, with ETH showing whale buying ($100 million reported), hinting at recovery potential.
• The $80,000 support remains intact—holding it could push BTC to $85,000, while a future breach might test $70,000, a level Arthur Hayes flagged as a potential bottom. The short-term outlook is bearish with signs of stabilization, as tariff fears persist, though late buying suggests resilience if $80,000 holds.

Monthly Outlook for March 2025

March 2025 has been turbulent, peaking at $93,668 on March 2 with Trump’s reserve hype, dipping to $85,803 on March 4 with tariffs (25% on Canada/Mexico, 20% on China), rebounding to $92,013 on March 5, and now at $84,152 after tariff escalation.

The broken ascending triangle leaves $80,000 as key support, with $85,000 resistance capping upside. Altcoins like XRP ($1.58), SOL ($109), and ADA ($0.53) mirror BTC’s swings, with volume ($43.21 billion) and fear (Index at 42) suggesting a volatile month—likely closing near $82,000–$85,000 unless tariff tensions ease or reserve developments shift sentiment.

Conclusion

Bitcoin’s 4.2% net drop to $84,152 over March 16–17, 2025, reflects a $380 million liquidation crash below $83,000 on March 16, driven by Mexico’s tariff escalation, followed by a March 17 recovery amid dip-buying. With a 36% correction from $110,000, BTC could retest $70,000 if $80,000 fails—tariff fallout and buying pressure will shape March’s volatile path.