Bitcoin Drops Under $87K as Crypto Markets Make a Sharp U-Turn

Crypto Markets Erase Trump Rally as Bitcoin Slips Below $87K; Stocks Decline Ahead of Tariffs

The excitement from President Donald Trump’s crypto reserve announcement has faded, with Bitcoin (BTC) and other major digital assets retracing most of their gains. Broader financial markets are also under pressure as investors brace for new U.S. tariffs on key trade partners.

By mid-afternoon in the U.S., Bitcoin is trading at $86,700, barely above its level before Trump’s Sunday social media post. Ether (ETH) has dipped below its pre-announcement price, and the ETH/BTC ratio has fallen to 0.025, its lowest point in five years.

Other cryptocurrencies mentioned in Trump’s crypto reserve plan—Solana (SOL), XRP, and Cardano (ADA)—have pulled back sharply from their Sunday highs, though they remain slightly elevated compared to pre-announcement levels.

“Crypto market volatility remains high, with major assets reflecting a put skew through March,” QCP Capital wrote to investors. “The VIX is also elevated, signaling broader risk aversion in financial markets, particularly amid the latest round of U.S. tariff escalations.”

Crypto-related stocks have mirrored the decline, with Core Scientific (CORZ) and Bitdeer (BTDR) reversing early gains and now posting significant losses on the session. Meanwhile, Semler Scientific (SMLR)—a medical equipment company with notable Bitcoin holdings—has dropped 7.3% after news of a Department of Justice (DOJ) investigation into potential federal anti-fraud violations related to its QuantaFlo product, according to Stat News.

Traditional markets are also in retreat. The Nasdaq is down 1.1%, and the S&P 500 has lost 0.8% ahead of Trump’s scheduled tariffs on Mexico, Canada, and China. Nvidia (NVDA), one of the biggest chipmakers, has plunged 6.5% following reports that Singapore has charged three individuals in connection with violations of U.S. export controls.

“Concerns over U.S. economic growth and the impact of tariffs set to take effect tomorrow are driving equities and interest rates,” said Jake Ostrovskis, an OTC trader at crypto market maker Wintermute.