Bitcoin Price Falls Below $83,000 Amid Trump’s Tariff Announcement

The price of Bitcoin dropped below $83,000 on Tuesday, March 4, following President Donald Trump’s confirmation that new tariffs on Canada and Mexico will take effect on the same day. The leading cryptocurrency experienced a 10% decline, reversing its weekend rally after Trump’s announcement of a U.S. strategic crypto reserve.

According to price trackers, Bitcoin’s value had surged to $95,000 over the weekend but fell back into consolidation after Trump reaffirmed 25% tariffs. This triggered a major selloff across financial markets, with the Dow Jones erasing a 300-point gain to drop over 1,100 points, and the S&P 500 losing $1.5 trillion in market cap.

Broader Crypto Market Suffers

The broader crypto market also suffered, with Ethereum plunging 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. Additionally, $1.02 billion in crypto futures were liquidated in the last 24 hours, with $925 million in long positions wiped out.

Despite the correction, BitMEX co-founder Arthur Hayes believes Bitcoin will bottom out before traditional markets and lead the recovery as the U.S. stock market finds its floor.

Hayes maintains that Bitcoin is still in a long-term bullish cycle, expecting it to eventually surpass $1 million. He pointed to declining U.S. Treasury liquidity as a bullish sign, though he warned that Bitcoin could briefly test $70,000 if risk assets continue selling off.

Upcoming White House Crypto Summit

Despite the market downturn, investors are looking forward to the first White House Crypto Summit on Friday, March 7. Led by White House AI and Crypto Czar David Sacks, the event is expected to reveal more details about the crypto strategic reserve and future regulations. Investors are hoping for a more defined framework that encourages institutional adoption and long-term growth in the crypto sector.

Tips for investors:

  • Stay informed about market trends and regulatory updates.
  • Diversify your investment portfolio to minimize risks.
  • Keep an eye on upcoming events, such as the White House Crypto Summit, for potential market impacts.

For more news and updates on the crypto market, visit Global Crypto News.

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