Bitcoin’s price has taken a sharp downturn, plunging below $90,000 on March 3, triggering over $150 million in liquidations across the cryptocurrency market.
The decline coincided with renewed market uncertainty, fueled in part by geopolitical and economic developments in the United States.
The sell-off began as traditional financial markets reacted to news that the U.S. government might introduce new trade tariffs, a move that rattled risk-asset investors. Comments from U.S. Commerce Secretary Howard Lutnick suggested that President Donald Trump was considering imposing tariffs on Canadian imports, injecting additional uncertainty into financial markets.
Bitcoin, which had seen a surge in recent weeks on speculation about a U.S. strategic crypto reserve, initially reached new highs before succumbing to sell-side pressure. Analysts noted that the return of traditional finance (TradFi) traders after the weekend appeared to amplify the decline, mirroring broader market unease.
The price drop had an immediate effect on leveraged positions in the crypto space, with data from CoinGlass showing that over $150 million in liquidations occurred in just four hours. Traders who had taken long positions anticipating further gains saw their positions wiped out as Bitcoin reversed its upward trajectory.
Despite the downturn, some market participants remained optimistic. Analysts pointed out that Bitcoin has consistently followed a cycle of price consolidations, breakdowns, and subsequent recoveries.
Market observers are now closely watching whether Bitcoin can establish a higher low—an indicator that could set the stage for a rebound toward the $100,000 mark. Some traders have drawn comparisons between the current price action and previous bullish consolidations, suggesting that Bitcoin’s long-term trajectory remains intact.
Adding to the bullish sentiment, Keith Alan, co-founder of Material Indicators, highlighted Bitcoin’s ability to close above its 21-week simple moving average (SMA). Historically, such a move has been an indicator of renewed bullish momentum, though Alan cautioned that resistance around $90,000 could lead to further short-term volatility.
One factor that could influence Bitcoin’s next move is an anticipated announcement from President Trump, scheduled for 1:30 PM Eastern Time. While details remain scarce, speculation suggests it could relate to digital asset policy or the administration’s stance on cryptocurrency regulation.
Trump has previously positioned himself as a crypto-friendly leader, with his administration reportedly exploring the concept of a strategic crypto reserve. If his upcoming remarks signal further support for digital assets, it could serve as a catalyst for Bitcoin’s recovery.
Bitcoin’s latest pullback underscores the continued volatility within the crypto market, driven by both macroeconomic developments and internal market dynamics. While some traders see opportunities in the recent dip, others remain cautious about potential headwinds.
For now, all eyes are on Bitcoin’s ability to stabilize and whether upcoming policy announcements will inject fresh optimism into the market.
