Bitcoin dips below $83K erasing weekend gains as Trump tariffs take effect
Bitcoin price fell below $83,000 as traders reacted to President Donald Trump’s confirmation that new tariffs on Canada and Mexico will take effect on March 4.
The leading cryptocurrency is down 10% on Tuesday, Mar. 4, according to the price tracker on crypto.news, reversing its weekend rally following Trump’s announcement of a U.S. strategic crypto reserve. Investor sentiment quickly shifted after Trump reaffirmed 25% tariffs, triggering a major selloff across financial markets.
The Dow Jones erased a 300-point gain to drop over 1,100 points, while the S&P 500 lost $1.5 trillion in market cap. Bitcoin (BTC), which had surged to $95,000 over the weekend, fell back into consolidation. Analysts had warned that the crypto reserve news lacked immediate impact and that macroeconomic risks could weigh heavier.
The broader crypto market also suffered. Ethereum (ETH) plunged 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.
Meanwhile, $1.02 billion in crypto futures were liquidated in the last 24 hours, with $925 million in long positions wiped out, according to Coinglass data.
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. In his March 4 Substack article, he pointed to declining U.S. Treasury liquidity as a bullish sign, though he warned BTC could briefly test $70,000 if risk assets continue selling off.
Hayes maintains that Bitcoin is still in a long-term bullish cycle, expecting it to eventually surpass $1 million.
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.
