Bitcoin Price Falls to $85,000 as Crypto Market Rally Fades

After a brief surge sparked by President Donald Trump’s announcement of a multi-asset national crypto reserve, the Bitcoin price has fallen to $85,000, wiping out gains made over the weekend. The total crypto market capitalization dropped by over 10% to $2.9 trillion, down from $3.2 trillion.

The market rally, which saw approximately $330 billion flow into Bitcoin and other digital assets on Sunday, March 2, has reversed course. This daily increase was one of the strongest ever recorded for cryptocurrencies. However, Bitcoin’s 8% decline below $85,500 amid a broad market sell-off has erased all gains made over the weekend.

Crypto Market Sell-Off Wipes Out Gains

The crypto market sell-off has also affected other major coins, with Ethereum, XRP, Solana, and Cardano posting double-digit losses in 24 hours. The prices of these altcoins have slid back to pre-weekend levels.

Stock markets have also been impacted, with the Dow Jones Industrial Average and S&P 500 indices shedding 1.48% and 1.76%, respectively. The tech-heavy Nasdaq index lost 2.64%. Crypto-related stocks faced heavy selling pressure, with Coinbase Global losing 4.58% and Robinhood down 6.41%.

Crypto Liquidations Reach $800 Million

The market flush has also closed on-chain leveraged positions, with crypto liquidations crossing $800 million in the past day and closing in on the $1 billion mark. This move has closed the gap in the CME Bitcoin futures and indicates tepid demand, as previously reported.

Investors should be cautious of market fluctuations and keep a close eye on crypto market trends.

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