Bitcoin Dips Below $83K, Erasing Weekend Gains as Trump Tariffs Take Effect

Bitcoin’s price has dipped below $83,000, erasing the weekend’s gains after President Donald Trump confirmed that new tariffs on Canada and Mexico will go into effect on March 4. The leading cryptocurrency is down by 10% as of Tuesday, March 4, according to crypto.news price data. This marks a sharp reversal after Bitcoin surged to $95,000 over the weekend following Trump’s announcement about a U.S. strategic crypto reserve.

Investor sentiment quickly shifted when Trump reiterated the imposition of a 25% tariff, which triggered a sell-off across various financial markets. The Dow Jones, for example, erased a 300-point gain, dropping more than 1,100 points, while the S&P 500 saw a significant loss of $1.5 trillion in market capitalization. Bitcoin, which had gained momentum with the strategic crypto reserve announcement, fell back into consolidation. Analysts had previously warned that while the crypto reserve news sparked some short-term optimism, broader macroeconomic risks could have a more substantial impact on the market.

The broader cryptocurrency market also saw declines. Ethereum dropped 15% to $2,067, marking its first dip below $2,100 in 15 months. Stocks linked to the crypto industry, such as Coinbase (-4.6%) and Robinhood (-6.4%), also reversed their earlier gains.

The crypto futures market took a hit as well, with $1.02 billion in crypto futures liquidated within the last 24 hours. Of that, $925 million in long positions were wiped out, according to Coinglass data.

Despite the recent correction, BitMEX co-founder Arthur Hayes remains optimistic about Bitcoin’s long-term prospects. In a Substack article on March 4, Hayes suggested that Bitcoin may bottom out before traditional markets and lead the recovery as the U.S. stock market finds its floor. He pointed to declining U.S. Treasury liquidity as a bullish sign for Bitcoin, although he cautioned that Bitcoin could briefly test $70,000 if risk assets continue to sell off.

Hayes maintains his long-term bullish outlook, forecasting that Bitcoin could eventually surpass $1 million.

Amidst the market downturn, investors are looking forward to the first White House Crypto Summit, scheduled for Friday, March 7. The summit, led by White House AI and Crypto Czar David Sacks, is expected to provide more details about the U.S. strategic crypto reserve and potential future regulations. Investors hope that the event will deliver a clearer regulatory framework, which could encourage institutional adoption and long-term growth in the crypto sector.