Bitcoin dropped to $80,000 on Sunday before recovering slightly. The world’s largest cryptocurrency is now trading at around $82,860 as of Monday morning. At some point, it dipped to $79,000 and appears to be inching up as at the time of this report
Bitcoin has lost over 10% in the past week and 1% in the last 24 hours.
Ethereum, Tether, and XRP also dipped by 1% in the last day. Solana lost 4%, while Cardano declined by 2%, adding to a 24% drop over the past seven days.
Crypto Markets React to Trump’s Trade Tariffs
Investors are uneasy about President Donald Trump’s trade policies. His planned tariffs on Canada, Mexico, and China have sparked concerns about a recession. Major business groups warn that these taxes on imported goods could hurt industries and consumers.
Goldman Sachs increased its recession probability from 15% to 20% within the next year. If the White House imposes additional tariffs—like the planned 25% duties on aluminum and steel set to take effect on March 12—risks could rise further, analysts say.
Trump addressed the economy in an interview with a major news network on Sunday. When asked about a potential recession, he said, “I hate to predict things like that… there is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. It takes a little time, but I think it should be great for us.”
Government Bitcoin Reserves and Market Impact
The U.S. government holds over 198,000 Bitcoin, worth approximately $16.6 billion, according to Arkham. It also owns other cryptocurrencies valued in the hundreds of millions.
The White House is considering a strategic Bitcoin reserve, but markets did not react positively to this news.
Many crypto investors had expected stronger pro-crypto policies from Trump after the Securities and Exchange Commission (SEC) withdrew legal actions against major firms. The SEC also declared that memecoins generally do not qualify as securities.
Trump, who has been linked to several crypto projects, expressed optimism at a recent White House crypto summit. He told industry leaders, “We feel like pioneers in a way.”
He also joked about Bitcoin’s long-term value, saying, “From this day on, America will follow the rule that every Bitcoin owner knows well: Never sell your Bitcoin. That’s a little phrase they have… who knows, but so far, it’s been right.”
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