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Read expert analysis on what could drive XRP to new highs here.
Bitcoin Slides as Tariffs and Crypto Reserve Uncertainty Weigh on Markets
It was a gloomy start to the week for the US markets. US equity markets also reacted to the tariff news. The Nasdaq Composite tumbled 2.64%, while the Dow and S&P 500 slid by 1.48% and 1.76%, respectively.
President Trump poured cold water on delaying tariffs on Canada, China, and Mexico, triggering a sharp sell-off. The Kobeissi Letter detailed the market reaction, highlighting a $1.5 trillion market cap wipeout between 10:00 AM and 3:30 PM ET despite a positive opening.
BTC followed a similar trend, tumbling to a low of $84,817 before briefly revisiting the $87k level.
During a press conference and Q&A Trump signed an Executive Order raising tariffs on China to 20%, while also stating:
“No room left for Mexico or for Canada. No. The tariffs you know, they’re all set. They go into effect tomorrow.
US Tariffs and Bitcoin’s Outlook
Rising tariffs could drive up import prices, delaying Fed rate cuts. A more hawkish Fed rate path could raise borrowing costs, affecting demand for risk assets. Notably, Trump’s tariff rhetoric has contributed to BTC’s drop from $105,993 on January 31.
Meanwhile, uncertainty about US lawmakers supporting a national Strategic BTC Reserve remains a headwind for bitcoin.
Bitcoin Price Scenarios: Key Levels to Watch
On March 3, BTC slid by 8.61%, partially reversing Sunday’s 9.44% rally, closing at $86,201. It could be another choppy day on Tuesday, March 4, as investors monitor potential retaliations to the US tariffs.
Potential price scenarios:
- Bearish Scenario: Escalating trade disputes, BTC-spot ETF outflows, and resistance to a crypto reserve could push BTC below $80,000.
- Bullish Scenario: Easing trade tensions, ETF inflows, and bipartisan support for a US Crypto Strategic Reserve could send BTC beyond $109,312.
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