Bitcoin price dropped 6% to $87,000, just 24 hours after President Trump announced a strategic crypto reserve on Truth Social, following a brief spike to $94,000 on March 2, 2025.
This decline comes amid growing market concerns tied to President Donald Trump’s trade tariffs, set to begin on Tuesday, March 4, 2025, against Canada, Mexico, and China.
The crypto market, which saw an 8% drop in the past 24 hours, mirrors broader market jitters, with stocks like the Dow, S&P 500, and NASDAQ also down, and Nvidia falling more than 6% on the day, per financial markets reports.
This story unfolds against the backdrop of Trump’s recent announcement on Truth Social about including Bitcoin and other cryptos in the U.S. Crypto Strategic Reserve.
Bitcoin Price Plunge: From $94,000 to $85,000
Bitcoin’s price soared to $94,000 on Sunday, March 2, 2025, after Trump’s announcement.
However, 24 hours after President Trump’s announcement, it had fallen to approximately $87,000, marking a 6% drop from $92,553.
The market concerns stem from Trump’s planned trade tariffs, set to begin on March 4, 2025, with no delay expected, targeting Canada, Mexico, and additional tariffs on China, per White House statements.
These tariffs could increase the cost of imported goods, potentially leading to higher consumer prices and stoking concerns over future inflation, even though recent inflation data was in line with expectations, as noted in economic reports.
The market’s reaction suggests anticipation of these pressures, with crypto prices, including Bitcoin, feeling the pinch alongside traditional markets.
Tariff Imposition Aftermath: Broader Crypto Market Performance
The crypto market’s 8% decline in the past 24 hours saw other major assets named in Trump’s reserve plan also tumble.
Ethereum (ETH) fell to $2,192, down 11%, Solana (SOL) dropped to $148, down 11%, Ripple (XRP) is priced at $2.47, down 11%, and Cardano (ADA) is at $0.90, down 11%.
Despite these daily drops, Cardano and Ripple have managed to remain in positive territory over the past seven days, with Cardano up 24% and Ripple up less than 1%.
The volatile market action led to $661 Million worth of futures position liquidations over the last 24 hours, with $517 Million being long positions, indicating many traders betting on price increases were caught off guard.
Coinglass data indicates that Bitcoin led with $220 Million in liquidations, followed by Ethereum at $131 Million, Solana, Ripple, and Cardano making up the rest of the top five.
Current Market State: Bitcoin at $85,038
As of writing, Bitcoin’s price has further declined to $85,038, down 8.21% in the last 24 hours. This additional drop reflects ongoing market pressures and aligns with the broader crypto market cap which has dropped 11%, erasing over $342 Million, as of this writing.
The current price of $85,038, within the context of the analysis, underscores the market’s continued volatility and the rapid sell-off following the initial Trump-induced rally.
This crypto market downturn aligns with broader market trends, with stocks also feeling the pressure from tariff-related concerns over potential inflation.
The Dow, S&P 500, and NASDAQ are down on Monday, with Nvidia, a top AI stock, dropping more than 6% intraday.
Source: https://www.thecoinrepublic.com/2025/03/04/tariffs-trump-crypto-market-following-reserve-tease/