Bitcoin’s price has fallen below $83,000, erasing its weekend gains as traders reacted to President Donald Trump’s confirmation that new tariffs on Canada and Mexico would take effect on March 4.
According to cryptonews data, the leading cryptocurrency saw a 10% drop on Tuesday, March 4, reversing its weekend rally that followed Trump’s announcement of a U.S. strategic crypto reserve. Investor sentiment quickly shifted after Trump reaffirmed the 25% tariffs, sparking a significant sell-off across financial markets.
According to a Tweet by Kobeissi Letter, The Dow Jones reversed a 300-point gain, plunging over 1,100 points, while the S&P 500 lost $1.5 trillion in market value. Bitcoin, which had surged to $95,000 over the weekend, returned to consolidation.
Source: KobeissiLetter X
Analysts had cautioned that the crypto reserve news wouldn’t have an immediate impact and that macroeconomic risks could outweigh short-term bullish factors.
The broader crypto market was also hit hard, with Ethereum falling 15% to $2,067, marking its first drop below $2,100 in 15 months. Stocks linked to crypto, including Coinbase (-4.6%) and Robinhood (-6.4%), reversed earlier gains. According to Coinglass data, $1.02 billion in crypto futures were liquidated in the past 24 hours, and $925 million in long positions were wiped out.
Bitcoin Might Dip To $70k But Will Still Surpass $1Millon
Despite the correction, BitMEX co-founder Arthur Hayes remains optimistic. He suggests that Bitcoin will bottom out before traditional markets and lead the recovery as the U.S. stock market finds its floor. In a March 4 Substack article, Hayes cited declining U.S. Treasury liquidity as a bullish signal. However, he cautioned that Bitcoin could briefly dip to $70,000 if risk assets continue to sell off.
Hayes maintains that Bitcoin is still in a long-term bullish cycle, predicting it will eventually surpass $1 million.
Despite the downturn, investors are looking ahead to the first White House Crypto Summit, which will be held on March 7 and led by White House AI and Crypto Czar David Sacks. The event will provide more details about the strategic crypto reserve and future regulatory plans. Investors hope for more transparent frameworks to foster institutional adoption and long-term growth in the crypto sector.
