Bitcoin climbed close to $95,000 during the weekend due to President Donald Trump”s declaration of a crypto reserve. After reaching a new high point Bitcoin lost value quickly when growing trade conflict between America and its major trading partners happened.

The cryptocurrency market lost $975.65 million during the last 24 hours thanks to trader liquidations as Bitcoin dropped by 10% to reach $83,577.

Trump increased tariffs on Chinese imports on March 3 and kept duties at 25% on imports from Mexico and Canada which generated massive selling across all markets. Market participants grew uneasy after this policy switch and selling spread across all financial markets.

China and Canada Retaliate with New Trade Tariffs

China reacted by applying 10% to 15% import tariffs on U.S. farm products and blocked investments from 25 American enterprises. Canada started applying tariffs to $30 billion of U.S. imports right after and planned to raise duties on $125 billion more beginning in March 25.

The rising trade dispute made major disruptions on both financial trading and cryptocurrency markets at once. The crypto market jumped when investors hoped for Trump”s crypto reserve concept only to plummet afterwards.

When the trade conflict rose in force the cryptocurrencies associated with this initiative like Ethereum and Cardano’s ADA along with XRP and Solana”s SOL experienced steep drops in market value reaching up to 17%.

Vincent Liu from Kronos Research as Chief Investment Officer expressed that market confidence collapsed when the United States increased tariffs causing this sudden market decline. According to Liu the crypto market reacts fast to economic changes as Bitcoin dropped to $83,000 while other cryptocurrencies experienced larger price decreases.

According to The Kobeissi Letter analysts the entire cryptocurrency market shed $500 billion worth of value during a 24-hour period. The current worth of all cryptocurrencies has decreased by $100 billion since the launch of crypto reserves on March 2.

The firm explained that investors moved their money into lower-risk assets because international trade conflicts and economic instability had made the market riskier. It further stated:

“The reality is that crypto is now viewed as a risky asset. Take a look at the sharp divergence between Gold and Bitcoin in their YTD performance. While gold prices are up +10%, Bitcoin is down -10% since January 1st. Crypto is no longer viewed as a safe haven play.”