The crypto market faced a turbulent week, driven primarily by:
- U.S. Bitcoin strategic reserve creation (March 7).
- New Donald Trump’s tariffs (March 10-11)
- U.S. inflation data (March 12)
This article examines the key shifts in market behavior amid these events, focusing on trading volume distribution and capital rotation trends.
A Flee to the U.S. Dollar
On March 10 and 11, stablecoins’ share of trading volume experienced heightened fluctuations as a new wave of tariffs hit the market. The initial reaction was a flight to the U.S. dollar, with USD-related pairs temporarily doubling their share in trading volume, reaching 21% in a combined volume with USD-backed stablecoins.
USD-backed stablecoins even saw a slight supply decrease on March 10, suggesting that some market participants had exited the market. However, in the following days, stablecoins quickly regained their dominance, climbing back to a 92% share in combined trading volume, as capital rotated into USDT and USDC.
Bitcoin, on the other hand, briefly benefited from this turbulence. It saw a modest increase in both market cap and trading volume during key events — Monday’s tariff-driven uncertainty and Wednesday’s U.S. inflation data release. This highlights Bitcoin’s perceived role as a safe haven among altcoin holders during periods of economic uncertainty.
Potential Tariff Impact Weakening
Although the new tariffs wiped out nearly $300 billion in total market cap within a week, their impact on crypto trading volume was relatively subdued. The market saw a brief 2.5x surge in volume on Monday and Tuesday. For comparison, previous tariffs imposed on Canada, Mexico, and China in early February triggered a 4x volume spike, while EU-focused tariffs led to a 3x increase.
Despite this short-lived boost, overall crypto trading volume remained in a downtrend, recording a 7% weekly drop, with Bitcoin (-23%) and stablecoins (-19%) being the primary contributors. This decline underscores reduced liquidity and weaker capital flows.
A Runaway from Ether&
Among top altcoins, Ether saw the most significant capital outflows relative to its size. Its trading volume share jumped from 13% to 22% within a week, while its market cap dominance declined from 8.70% to 8.15%. This divergence suggests that traders were actively rotating out of ETH, primarily in favor of fiat, stablecoins, and Bitcoin.
Furthermore, Ethereum’s 2% market depth shrank by 14% over the week, reflecting a more fragile order book and an increasing risk of price volatility.&
However, as overall market activity declined, trading volume became more concentrated on Bitcoin and Ether. This suggests that while capital fled from many altcoins, traders continued engaging with ETH — albeit in a more volatile and less liquid environment — reinforcing its role as a core trading asset alongside Bitcoin.
TRUMP Dominance Reached New All-Time Low
Despite a week dominated by Trump-related events, the market has shown little interest in the TRUMP token. Once a major speculative asset, the token briefly commanded 10% of the entire crypto trading volume on Donald Trump’s inauguration day. However, its relevance has since faded, with its trading volume share recently plunging to a new all-time low of 0.51%.&
This sharp decline suggests waning speculative enthusiasm and diminishing liquidity, potentially limiting the token’s ability to stage a meaningful recovery unless a new catalyst reignites interest.
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