The rally in Bitcoin (BTC) that resulted from news of a U.S. crypto reserve has evaporated as the price of the largest cryptocurrency has fallen 10% over the last 24 hours to $83,000 U.S.
The reversal has wiped out nearly all the gains that Bitcoin saw immediately after U.S. President Donald Trump announced plans to create a U.S. strategic crypto reserve.
Bitcoin had run up to $93,000 U.S., gaining about 14% over the past weekend. Crypto trades 24 hours a day, seven days a week.
However, those gains have now been given up as Bitcoin’s price slides down towards the key threshold of $80,000 U.S.
Other cryptocurrencies have experienced even worse declines, with the price of Ethereum (ETH) falling 15% on March 3 to trade at $2,135 U.S. per digital token.
Stocks related to cryptocurrencies also slid into the red after seeing early gains on the day, with crypto exchanges Coinbase (COIN) and Robinhood (HOOD) falling 5% and 6%, respectively.
Shares of serial Bitcoin acquirer MicroStrategy (MSTR) went from a 14% gain when the market opened on March 3 to trading down 2% at its close.
News of the U.S. strategic crypto reserve was overshadowed by the Trump administration’s 25% tariffs on most imports from Canada and Mexico starting today (March 4).
The threat of a trade war with America’s closest allies, as well as China, has investors fleeing risk assets such as cryptocurrencies.
Bitcoin is now down 23% from its January all-time high of just over $109,000 U.S., which occurred on the day of President Trump’s inauguration.
The price of Bitcoin is currently at $83,500 U.S.
