Bitcoin’s price has failed to return to the $85,000 level it reached before President Donald Trump’s announcement of a U.S. crypto reserve that sent its value soaring after a sell-off on fears of tariffs.
On Tuesday, Bitcoin fell 2% to $83,508.78, according to Coin Metrics, and is now 23% below its all-time high. However, cryptocurrencies such as XRP and ADA, which were also mentioned in Trump’s surprise announcement, have held onto some of their gains, while SOL has erased all of its gains.
Riskier assets, including cryptocurrencies, suffered a sharp drop on Monday as investors worried that the proposed tariffs would be implemented. The concern overshadowed euphoria over the U.S. “strategic crypto reserve,” which was hoped to pull Bitcoin out of the slump. After hitting a record high in January, Bitcoin suffered its worst month since 2022 in February.
Analysts have warned that economic uncertainty could continue to weigh on Bitcoin throughout March, especially as the crypto industry still lacks a major catalyst. While the idea of the US Reserve holding crypto has been partially priced into the market, regulatory clarity through strong legislation could be the real factor that can boost prices.
Investors will be paying close attention to the first White House Crypto Summit, scheduled for this Friday, for more information on the Reserve's plans and the administration's policy towards the crypto industry.
