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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
03/04/2025

Bitcoin Drops Below $90,000, U.S. Stocks Tumble Despite Trump's Crypto Reserve Announcement

Over March 3–4, global risk assets sold off sharply after news of former President Donald Trump's crypto reserve plan failed to sustain market momentum. Bitcoin (BTC) fell 13% from its peak, Ethereum (ETH) dropped from $2,550 to near $2,000, while altcoins like Solana (SOL) also gave back most of their earlier gains. Crypto Markets Surge Then Collapse Trump's announcement that the United States would include Bitcoin, Ethereum, XRP, Solana, and Cardano in a

Bitcoin Drops Below $90,000, U.S. Stocks Tumble Despite Trump's Crypto Reserve Announcement

Over March 3–4, global risk assets sold off sharply after news of former President Donald Trump's crypto reserve plan failed to sustain market momentum. Bitcoin (BTC) fell 13% from its peak, Ethereum (ETH) dropped from $2,550 to near $2,000, while altcoins like Solana (SOL) also gave back most of their earlier gains.

Crypto Markets Surge Then Collapse

Trump's announcement that the United States would include Bitcoin, Ethereum, XRP, Solana, and Cardano in a Strategic Reserve initially sent a wave of euphoria through the market. Total crypto market cap jumped by over $300 billion in just a few hours after the announcement.

However, the rally reversed quickly as a wave of selling took hold. According to CoinMarketCap data, total crypto market cap fell below $3 trillion — its lowest level since November 2024. In the past 24 hours, more than $1.06 billion was liquidated in the derivatives market, with Bitcoin accounting for $386 million and Ethereum for $207 million.

U.S. Stocks Tumble as Investors Flee

It wasn't just crypto — U.S. equity markets also had a turbulent session. All three major Wall Street indexes closed sharply lower:

  • S&P 500: -1.76%
  • Nasdaq: -2.64%
  • Dow Jones: Swung from up 200 points to down more than 600 points
  • Nvidia stock: -9%

Technology companies, which tend to be the most sensitive to market swings, saw broad-based selling. The Magnificent 7 index — tracking the seven largest tech companies — dropped 3.45%.

What Drove the Market Selloff?

Several factors contributed to the steep declines across both crypto and equities:

  1. "Sell the News" Effect: Investors took profits after crypto surged on Trump's announcement.
  2. Concerns Over Trump's Economic Policies: He announced 25% tariffs on imports from Canada and Mexico, with threats of further tariff hikes on other countries starting April 2. Billionaire Warren Buffett criticized the policy as "a form of economic warfare," warning it could stoke inflation and hurt American consumers.
  3. Geopolitical Uncertainty: Trump announced he would suspend all military aid to Ukraine, demanding Kyiv demonstrate good faith in peace negotiations with Russia. The move added unpredictability to the regional situation and raised fears of a major shift in U.S. foreign policy. Investors rotated out of risk assets and into safe havens such as gold and government bonds.

Can the Market Recover?

Crypto markets may find support from Trump's crypto summit on March 7, where he is expected to provide more clarity on the U.S. crypto reserve plan. If stronger commitments from Trump or additional favorable policies emerge, the market could regain momentum.

That said, with ongoing macro headwinds — including trade wars, geopolitical tensions, and recession risks — investors remain cautious. In the near term, Bitcoin and the broader crypto market are likely to stay volatile.

🔹 Do you think the market will recover soon? Share your thoughts!