Bitcoin’s price took a sharp dive over the past 24 hours, falling 9.77% to $84,228.47, according to CoinMarketCap data. Over the past week, BTC has dropped 8.66%, erasing much of the optimism sparked by Donald Trump’s announcement of the US Crypto Strategic Reserve.

The market initially responded positively to the news, with Bitcoin briefly surging above $90,000 during low liquidity hours on Sunday. However, the rally was short-lived as concerns over broader macroeconomic conditions and regulatory uncertainty weighed on risk assets.‍

Market Shock: Liquidations Exceed $1 Billion

The sell-off intensified overnight, with Binance data showing BTC dropping below $83,000 at one point, marking a 24-hour decline of over 10%. Ethereum suffered an even steeper decline, losing more than 16%, while altcoins like XRP, SOL, and ADA—all mentioned in Trump’s reserve plan—plunged by more than 20%.

According to Coinglass data, the sudden market downturn led to over $270 million in liquidations in just one hour, while total liquidations over 24 hours surpassed $1.06 billion.‍

Fear Takes Hold Despite Trump’s Bold Move

The Fear and Greed Index, which had briefly recovered following the U.S. Crypto Reserve announcement, dropped from 39 to 24, pushing the market deeper into fear territory. This reflects growing uncertainty as traders digest the potential implications of Trump’s crypto strategy amid his administration’s wider economic policies.

QCP Capital noted that while some traders had expected the Crypto Strategic Reserve announcement to fuel Bitcoin’s next leg up, others saw it as a premature move by Trump to regain investor confidence. The timing of the announcement, coming after a rocky week for risk assets due to new tariffs and geopolitical tensions, suggests it was aimed at stabilizing market sentiment rather than triggering a new all-time high rally.

QCP Capital further highlighted that Bitcoin remains stuck near the bottom of its multi-month trading range, with elevated volatility in both BTC and ETH options markets. The firm noted that front-end crypto volatility remains high, with a persistent put skew until the end of March, indicating that traders are still hedging against downside risks. 

Additionally, the VIX index remains elevated, signaling broader unease in risk markets, especially after recent tariff escalations by the U.S. administration.

They also pointed out that the White House Crypto Summit on Friday will be a crucial event, as it may reveal more details about how the US Crypto Strategic Reserve will function. While some believe this reserve could provide a long-term bullish catalyst, others remain skeptical about its immediate impact on Bitcoin’s price action.

Adding to the turmoil, President Trump confirmed that 25% tariffs on goods from Mexico and Canada will take effect on Tuesday, escalating trade tensions across North America. 

The move triggered a selloff in global markets, with the Dow Jones, S&P 500, and Nasdaq all plunging. Mexico and Canada have both announced retaliatory measures, while China has vowed countermeasures against increased tariffs on its exports. 

Analysts warn that these aggressive trade policies could further strain financial markets and contribute to prolonged volatility across risk assets, including Bitcoin.‍

What’s Next? Key Events to Watch

Despite Bitcoin’s recent slide, the market’s next moves could hinge on upcoming economic indicators. The US PMI report on Wednesday and Non-Farm Payrolls (NFP) data on Friday are expected to influence market sentiment. Meanwhile, the White House Crypto Summit on Friday could provide more details on the U.S. Crypto Strategic Reserve and its long-term impact on digital assets.

While Trump’s move was meant to be a market lifeline, it remains to be seen whether it was played too soon. With the VIX still elevated and crypto options reflecting put skew until the end of March, traders remain cautious as volatility looms.

For now, the crypto market is left asking: Has Trump exhausted his cards, or does he have another surprise up his sleeve?

Read more: Will Bitcoin and altcoins surge or crash? Key events to watch