Bitcoin Plummets 10% as Trump's Crypto Reserve Plans Fade
1min read Bitcoin (BTC) experienced a significant downturn on Monday, March 3, with the world's largest cryptocurrency by market capitalization plummeting nearly 10% to $85,000. This sharp reversal erased virtually all the gains BTC had made over the weekend following U.S. President Donald Trump's announcement of plans to create a U.S. strategic crypto reserve. Bitcoin had initially surged to $93,000 on the news, but those gains faded during Monday's trading session.
Other cryptocurrencies expected to be part of the U.S. reserve also suffered substantial losses. Ethereum (ETH) fell 15% to $2,135, while Solana (SOL) plunged 18% to $143.05 per digital token. All major cryptocurrencies shifted from green to red on the day.
Stocks related to crypto also took a beating. Crypto exchanges coinbase global (COIN) and Robinhood (HOOD) fell 5% and 6%, respectively, after initially rising at the start of the trading session. Shares of microstrategy (MSTR) went from a 14% gain at market open to trading down 2% at close.
The U.S. strategic crypto reserve announcement was overshadowed by news that the Trump administration is moving forward with 25% tariffs on most imports from Canada and Mexico, effective March 4. The threat of a trade war with America's allies has led investors to flee riskier assets such as crypto. As a result, BTC is now down more than 20% from its January all-time high of just over $109,000, which occurred on the day of President Trump's inauguration.
Most Wall Street firms do not offer ratings or price targets on Bitcoin. However, looking at the cryptocurrency's performance, the price of BTC has declined 4.66% in the last 12 weeks. This decline, coupled with the recent market volatility, may present an opportunity for investors to consider BTC as a potential buy.
