Bitcoin Plunges Below $90K as TradFi Returns, Tariffs Loom

Bitcoin's price fell below $90,000 on March 3, as the crypto market witnessed a liquidation of over $150 million in just a few hours. The sell-off was triggered by a combination of factors, including US trade tariffs and the return of traditional finance (TradFi) traders.

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping below $90,000, shedding up to 5% on the day. Initial excitement over the prospect of a US strategic crypto reserve saw weekly highs before sell-side pressure kicked in as TradFi returned. A suggestion from US Commerce Secretary Howard Lutnick on CNN that President Donald Trump should decide on tariffs against Canada later in the day contributed to a nervous open for stocks.

Bitcoin's own reversal took its toll on longs, with cross-crypto liquidations passing $150 million in the four hours to the time of writing, per data from monitoring resource CoinGlass. A positive note meanwhile came from anticipation over a reported "investment announcement" scheduled by Trump for 1:30 pm Eastern Time.

Trading firm QCP Capital was among those calling for a balanced view going forward. "Following last night's clutch announcement, it's likely that Trump will do whatever it takes to avoid presiding over a prolonged stock market drawdown," it argued in its latest post to Telegram channel subscribers. QCP noted raised VIX volatility index levels, reflecting what it called "broader market unease in risk assets overall."

Bitcoin traders hoped for a higher low construction to play out on BTC/USD, fueling a potential rally toward lost support levels closer to $100,000. Popular trader Jelle wrote in one of the day's X posts, "Bitcoin broke down from the range, dumped hard - and immediately climbed back up to reclaim the range lows. Higher low around this area would be perfect. Let's see." Fellow trader Daan Crypto Trades compared range violations witnessed earlier in the bull run.

The day prior, Keith Alan, co-founder of trading resource Material Indicators, flagged the 21-week simple moving average (SMA) as the key reclaim level. A weekly close above it, which BTC/USD subsequently achieved, constituted an "extremely bullish" sign. "That said, be prepared